Saudi Industrial Petrochemicals Company (Sipchem) is due to close the financing of an $800m 15-year loan by February 2012 for a project it is developing in joint venture with South Korea’s Hanwha Chemicals Corporation.

The deal was funded by Sabb, Riyad Bank, Saudi Hollandi and National Commercial Bank, with the UK’s HSBC acting as financial adviser. Sources close to the transaction say it was twice oversubscribed.

The financing was launched to banks in August, with commitments received in October. The loan is currently in documentation.

International Polymers Company, the name of the joint venture developing the project, will produce 200,000 tonnes a year (t/y) of ethyl vinyl acetate and 125,000 t/y of polyvinyls. The plant is due to be completed in 2013 and capital expenditure on the project is estimated at about $860m.