Sabb completes Sipchem loan syndication

23 September 2008
Syndication of a $741m loan for the construction of an acetyls project at Jubail, by Saudi International Petrochemical Company (Sipchem) has been completed, with only three banks joining the funding group.

Sabb acted as underwriter on the deal after agreeing to take on the whole debt package in March.

The other banks in the syndicate are Saudi Arabia's Riyad Bank and Saudi Hollandi, along with Germany’s Kreditanstalt fur Wiederaufbau (MEED 20:5:08).

The deal is split between a $362m commercial loan, a $360m bridge facility, and a $19m bridge facility.

The total project cost for the acetyls plant is $1.83bn. The figure has risen from the initial estimates of $1.4bn because of inflation in construction costs.

Further financing for the project is being provided by the Saudi Industrial Development Fund (SIDF) and the Public Investment Fund (PIF).

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