Sharq MLAs appointed

16 December 2005
A group of 10 mandated lead arrangers (MLAs) has been appointed on the $972 million commercial debt package for the Eastern Petrochemical Company (Sharq)project at Jubail. The 10 are understood each to have provided commitments of $150 million. Bank of Tokyo-Misubishi is acting as financial adviser (MEED 25:11:05).

Commitments will be scaled back dependent on agreement of a $1,000 million loan from Japan Bank for International Co-operation (JBIC) and funding from the Public Investment Fund. The tenor is 10 years and the margin is 50 basis points (bp) over Libor, with fees of 55 bp.

The Sharq project entails the expansion of the company's polyethylene complex. Sharq is a 50:50 joint venture of Saudi Basic Industries Corporation (Sabic) and a group of Japanese companies led by Mitsubishi Corporation(MEED 21:10:05).

Financial bids are due by mid-December on two other petrochemicals projects, the phase 2 expansion of the Saudi International Petrochemical Company (Sipchem)plant at Jubail and the Al-Wahapolypropylene and propane dehydrogenation project at Jubail being developed by Sahara Petrochemical Company. HSBCand Saudi British Bankare advising on both deals (MEED 25:11:05).

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