NPPC equity in place

05 December 2003
National Polypropylene Company (NPPC)was due to sign on 3 December a joint development agreement with shareholders coming on board for the proposed integrated propane dehydrogenation (PDH)/polypropylene (PP) facility planned at Jubail. The private placement of NPPC's equity is being arranged by Gulf International Bank (GIB - MEED 30:5:03).

An announcement of the completed equity arrangements and the identity of investors is planned for 14 December, a source close to the project told MEED on 1 December. The company's total equity will be about SR 750 million ($200 million). Among the shareholders in NPPC will be Gulf investors, a major international bank and other regional and European investors.

Progress is also being made on arranging a commercial debt tranche expected to be worth about SR 1,100 million ($293 million). GIB has the mandate to act as financial adviser on the debt financing.

US-based ABB Lummus Globalhas started preliminary basic engineering works on the project. The company also has the project management contract as well as licensing agreements for the plant's technology - Catofin PDH and Novolen PP.

NPPC has selected South Korea's Samsung Engineering Corporationfor the engineering, procurement and construction (EPC) contract. The signing of the contract has still to take place.

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