Financial close nears on major Saudi petrochemicals deals

22 April 2008
Financial close on two major Saudi Arabian project finance deals is expected in May, with the long-awaited conclusion of financing for the National Chevron Philips (NCP) and Saudi Kayan projects.

The two petrochemicals projects are expected to reach financial completion in early and late May respectively, concluding a protracted financing process that began in the third quarter of 2007.

The NCP deal to raise $1.8bn in debt to finance a $5bn petrochemical project at Jubail began in September 2007, while the $10bn Kayan project has also been in the market since September (MEED 17:1:08).

Bankers working on the $6bn debt package for the Kayan deal have been expecting it to close since March, but hit problems finalising a loan from the Public Investment Fund (PIF). They say they are now optimistic that the deal can reach a conclusion in the next four weeks.

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