Advanced Petrochemical signs $1.6bn facilities

06 July 2022
Consortium of nine banks will finance construction of plants in Jubail

Saudi Arabia’s Advanced Polyolefins Industry Company (Apoc), a subsidiary of privately-owned Advanced Petrochemical Company, has signed SR6.1bn ($1.6bn) of facilities with a consortium of financial institutions for the construction of three plants at Jubail Industrial City 2.

The projects include a propane dehydrogenation (PDH) plant, a polypropylene (PP) plant, and an isopropanol (IPA) plant, the firm said in a filing with the Saudi Stock Exchange (Tadawul).

The company signed the sharia-compliant Islamic facility agreements with a consortium of financial institutions, which include the following banks:

  • Alinma Bank
  • Al-Rajhi Banking and Investment Corporation
  • Arab National Bank
  • Arab Petroleum Investments Corporation
  • Bank Albilad
  • Banque Saudi Fransi
  • Riyad Bank
  • Saudi British Bank
  • Saudi National Bank

The facilities comprise a base facility of SR4.7bn, a standby facility of SR438m, and a bridge murabaha facility of SR600m.

The base and standby facilities are repayable in 22 unequal semi-annual installments starting from 31 May 2025 until 20 November 2035. The bridge and VAT murabaha facilities will be payable no later than 31 May 2026.

Advanced Petrochemical has also entered into a debt service undertaking for an amount of up to $250m and a pledge of the shareholders’ shares in Apoc.

The Islamic facility agreements will be utilised to finance the construction of the plants, which have the following nameplate capacities:

  • PDH: 843,000 tonnes a year (t/y) of propylene
  • PP: 800,000 t/y of polypropylene
  • IPA: 70,000 t/y of isopropanol

US/India-based Synergy Consulting and the UK’s BSF provided financial advisory services to Advanced Petrochemical on the facilities.

Advanced Petrochemical Company subsidiary Advanced Global Investment Company (AGIC) said in March it has received approval from the kingdom’s Energy Ministry for the allocation of the required quantities of feedstock for its upcoming petrochemicals-producing complex in Jubail Industrial City 2.

The complex has a budget of $1.88bn.

EPC works on the complex were awarded in April last year to Italy's Tecnimont and South Korea's Samsung Engineering, while the civil works deal was awarded to the local Al-Rushaid Construction Company.

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