Saudi Acrylic Acid Company (SAAC), a joint venture petrochemicals company, is set to close the financing for its $1.5-2bn petrochemicals joint venture by early April, according to bankers close to the deal.

Banks signed commitment letters for the project in late 2011 and the deal is currently in documentation. The loan consists of a $1.3bn sharia-compliant bank tranche, financed by the local banks lending in Saudi riyals.

Pricing on the deal starts at about 170 basis points above the Saudi interbank offered rate (Sibor). Banks in the deal include Samba, Banque Saudi Fransi, Sabb, National Commercial Bank, Saudi Hollandi, Alinma, Al-Rajhi and Riyadh Bank.

The financing will be used to fund three petrochemicals projects being developed by joint venture companies between the local petrochemicals firms Tasnee and Sahara, and Germany’s Evonik Industries.