Saudi Hollandi to finalise $195m financing for Jubail scheme

05 August 2008
Saudi Hollandi is close to finalising a $195m Islamic project financing facility for the $289m Arabian Amines petrochemicals development in Jubail by the Al-Zamil Group.

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.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.