Rabigh PIM released

30 September 2005
The preliminary information memorandum (PIM) has been issued to banks on the $2,000 million debt package to fund the estimated $8,500 million Rabigh integrated refining and petrochemicals complex. Proposals are due to be submitted by the end of October to the 50:50 joint venture of Saudi Aramcoand Japan's Sumitomo Chemical Company, known as Rabigh Refining & Petrochemical Company (PetroRabigh).

The sponsors are looking for just over $1,500 million in conventional finance and a $500 million Islamic tranche, both with a tenor of 15 years. Banks are being asked for underwriting commitments of $150 million and take-and-hold positions of $100 million. The documents are understood to have been sent to a wide range of banks derived from a market-sounding exercise conducted in June.

Under the proposed debt package, Japan Bank for International Co-operation (JBIC) is expected to provide a $2,500 million, 16-year loan - its biggest ever project loan to the region - while the Public Investment Fund is extending a further $1,000 million, giving an overall debt package of $5,500 million. The remaining $3,000 million will be provided through share capital, subordinated shareholder loans and pre-completion net revenues.

The debt package will also cover the captive independent water, steam and power project (IWSPP) to serve the complex.

Sumitomo-Mitsui Banking Corporationis acting as PetroRabigh's financial adviser, Clifford Chanceis providing legal counsel, Stone & Webster, part of the US' Shaw Group, is technical consultant and the UK's Nexantis market consultant (MEED 10:6:05).

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