Saudi Basic Industries Corporation (Sabic) and the US’ ExxonMobil are set to approach banks for the financing of their $3.4bn elastomers project at Jubail after Ramadan, according to sources close to the project.

The pair sent non-disclosure agreements to banks on 1 July and are planning to send out a detailed information package on the project in just over a months’ time.

Sabic and ExxonMobil are understood to be relying heavily on export credit agencies to finance the deal, along with contributions from the local Saudi Industrial Development Fund and Public Investment Fund. A group of local and international banks are also being approached to fund the scheme.

A local currency sukuk issue is being considered as part of the financing package to limit the requirement for bank financing, according to several Riyadh-based sources.

The elastomers project is being developed by Kemya, a 50:50 joint venture company of the two sponsors that already has a petrochemicals plant at Jubail. The new elastomers project will produce more than 400,000 tonnes of rubber, thermoplastic speciality polymer and carbon black.

Financial close on the deal is targeted for early 2013, according to one local source. The UK’s HSBC is financial adviser to the sponsors. In late June Kemya awarded a raft of contracts for the development of the project.