SABB begins Sipchem syndication

20 May 2008
SABB has begun syndication of a $745m project finance loan for Saudi International Petrochemical Company (Sipchem) to a select number of local and regional banks.

With Sipchem’s financial adviser, HSBC, SABB has approached seven banks to join the syndicate.

Sources close to the deal say that initial responses from the banks approached has been strong, with banks eager to reaffirm their commitments to Sipchem after failing to respond to initial funding requests in February 2008.

This allowed SABB to come in and underwrite the whole debt, with a view to syndicating to a smaller select banking group at a later date (MEED 4:4:08).

The syndication is expected to close in early June.

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