Saudi Arabia’s Al-Waha Petrochemical Company, a subsidiary of Sadara Chemical Company, has refinanced existing loans via a SR1.96bn ($523m) Islamic facility.

The lending banks are Sabb and Banque Saudi Fransi, and they will refinance previous loans funded by commercial lenders as well as the government-backed Saudi Industrial Development Fund (SIDF) and the Public Investment Fund (PIF).

The original loan facility was signed in 2006 and financed the project phase of the development of Al-Waha’s petrochemicals complex built in Jubail Industrial City in the Eastern Province of Saudi Arabia.

In addition to the refinancing, Al-Waha Petrochemical Company signed an Islamic murabaha working capital facility of SR375m with Sabb to support its working capital and general corporate requirements. The facility has a tenor of one year and will be renewed annually.

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