Saudi Aramco Total Refinery & Petrochemical Company (Satorp) has secured SR2bn ($533m) from the state-owned Saudi Industrial Development Fund (SIDF).

The deal involves four loans agreed in February 2015, for which Satorp has now satisfied the conditions.

They will be disbursed in one tranche on 15 June.

The loans will be used to refinance existing commercial bank loans and reduce the cost of financing. SIDF provides soft loans with little or no interest rates to industrial projects in the kingdom.

Satorp secured $8.5bn of financing in 2010 to build the 400,000 barrels a day Jubail refinery, worth $9.6bn.

The financing came from multiple sources, including $4.01bn from the local Public Investment Fund and Export Credit Agencies (covered and direct), and $4.49bn from commercial financial institutions.

The senior loan facilities have a tenor of 16 years.

The US dollar commercial and Export Credit Agencies (ECA) covered loan facilities, thought to make up around $1bn of the project finance, were priced at 185 points above the London inter-bank offered rate (Libor).

MEED reported at the time that the section funded by Saudi banks was at only 100 points above the Saudi inter-bank offered rate (Sibor).

A $1bn sukuk issued in 2011 completed the project finance.

Satorp is 62.5 per cent owned by local Saudi Aramco and 37.5 per cent by France’s Total. The refinery began operations in late 2013.

Phase two of the project has been in the study phase since 2012.