Saudi International Petrochemical Company (Sipchem) is due to complete the financing for $1.1bn polymers plant in Jubail by the first quarter of 2012, according to bankers close to the deal.

The company is raising around $800m in debt for the project from a group of local banks, including National Commercial Bank, Riyad Bank, Saudi Hollandi, and SABB. The deal will be funded in Saudi riyals.

The UK’s HSBC is acting as adviser to Sipchem on the deal, after being appointed in March 2010.

Sipchem is planning to develop a 200,000 tonne-a-year (t/y) ethyl vinyl acetate plant with production capacity of 125,000 t/y of polyvinyls. The plant is due to be completed in 2013, and will be a joint venture with South Korea’s Hanwha Chemicals Corporation. Sipchem will hold 75 per cent of the project, while Hanwha will hold the remaining 25 per cent. Sipchem awarded South Korea’s GS Engineering & Construction an $800m engineering procurement and construction contract for the project in December 2010.

The project is one of several new petrochemicals schemes planned in Saudi Arabia, including PetroRabigh 2, which also involves HSBC as financial adviser along with Japan’s Sumitomo Mitsui Banking Corporation.