A source close to the deal says margins on the debt will be over 100 basis points and that Hollandi decided to finance the deal on its own because of its relationship with the Al-Zamil Group.

No syndication of the debt, which has a tenor of 13.5 years, is expected to occur. The deal is split between a Murabaha tranche of more than $100m and an Ijara tranche. Initial documentation has been completed and financial close is expected in early August.

The project involves the development of a 27,215 tonnes-a-year ethyleneamines plant.

Further financing is being provided by a Saudi Industrial Development Fund (SIDF) loan of about $100m.