Sabic signs up for Kayan olefins

05 May 2006
Saudi Basic Industries Corporation (Sabic) has formally signed a partnership agreement with the local Kayan Petrochemical Company for its planned Jubail olefins complex, and established a public joint stock company to carry out the project. The new firm will be capitalised at SR 12,000 million ($3,200 million).

Sabic will hold a 35 per cent stake, Kayan will own 20 per cent and the remainder will be sold through an initial public offering (IPO), expected to take place during the third quarter. Gulf International Bank is the financial adviser on the IPO while Arab Banking Corporation, BNP Paribas and Samba Financial Group are advising on the project financing of the complex, which will comprise a 1.3 million-tonne-a-year cracker and a range of downstream units (MEED 21:4:06).

The local Project Management & Development Company is the main shareholder in Kayan. It signed a memorandum of understanding with Sabic to partner on the long-awaited project in late January (MEED 3:2:06).

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