Aramco Dow planning to approach export credit agencies

25 July 2011

Jubail petrochemicals scheme could be one of biggest project finance deals in 2012

Saudi Aramco and the US’ Dow Chemical Company will approach export credit agencies (ECAs) for financing the pair’s $15bn Jubail petrochemicals project in the next month.

According to sources close to the project, the two sponsors could start talking to ECAs by the first week of August.

If that occurs, then commercial banks could be approached about financing the project in late 2011 or early 2012. It is too early to know the exact funding breakdown of the deal, but the deal is expected to be one of the largest project finance deals to hit the market in 2012.

The project has faced delays following the global financial crisis, and the decision to shift the project from its originally planned location at Ras Tanura (MEED 08:04:11).

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