Saudi International Petrochemical Company (Sipchem) plans an early redemption of a sukuk maturing in July this year.

The petrochemicals company said it will send a notice to sukuk holders informing them of its intentions and will use its available cash to pay it the outstanding amount, according to a statement to Saudi Stock Exchange (Tadawul) where its shares are traded. Sipchem has originally issued the SR1.8bn ($480m) sharia-compliant bond in 2011. It intends to redeem the sukuk on June 15.

The company is scheduled to start meeting qualified investors this month for a potential sukuk, which it plans to privately place solely with sophisticated investors, it said in a 28 March statement to Tadawul where its shares are traded.

The company said the local Riyad Capital and NCB Capital are the managers on the transaction, adding that the size of the offering will be determined by market conditions. Local Salman al-Sudairy and the US’ Latham Watkins are legal advisers to the lead managers and the local Khoshaim & Associates and the UK’s Allen Overy are advising Sipchem.

The company, which has struggled to maintain profitability on the back of sliding oil prices and weaker demand for chemical products, aims to diversify its financial resources through the sukuk offering.