Pets financings advance

18 May 2006

International Methanol Company, a subsidiary of Saudi International Petrochemical Company (Sipchem), is close to completing the refinancing of a loan taken out to fund its Jubail methanol plant. The restructuring will not only reduce the price but will convert the facility into a sharia-compliant borrowing. Banque Saudi Fransi (BSF), Riyad Bank and SABB are expected to join the new transaction. The original 10-year, $180 million loan was taken out in 2003 (MEED 10:10:03).

The deal is one of several approaching completion in the kingdom. The appointment of a six-strong group of mandated lead arrangers (MLAs) is expected by the end of May on the $500 million, 14-year sharia-compliant financing of the Al-Waha polypropylene and propane dehydrogenation project at Jubail: it is being developed by the local Sahara Petrochemical Company. The expected MLAs are ABC Islamic Bank, Bank Aljazira, BSF, Gulf International Bank, SABB and Saudi Hollandi Bank (SHB). HSBC is advising (MEED 14:4:06).

An unofficial list of MLAs is also understood to have been drawn up on the financing of the Yanbu National Petrochemical Company (YanSab) complex. Bank bids were submitted in late April on the $2,400 million, 12-year deal. ABN Amro and SHB are advising (MEED 5:5:06).

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