A six-strong group of mandated lead arrangers (MLAs) has been appointed on the debt package for the Jubail cracker project planned by the local Tasnee Petrochemicals. HSBC with its local affiliate Saudi British Bank (SABB) is acting as financial adviser (MEED 13:1:06).

The MLAs are Calyon with Banque Saudi Fransi, HSBC with SABB, Royal Bank of Scotland, Samba Financial Group, Societe Generale and West LB. The pricing on the 15-year deal ranges from 100-135 basis points over Libor.

The commercial portion is currently worth $820 million, but may be scaled back if the Public Investment Fund extends financing. The Saudi Industrial Development Fund will also provide a loan. An export credits tranche of about $900 million will be provided by four export credit agencies – Germany’s Hermes, Italy’s Sace, Export-Import Bank of Korea and Korea Export Insurance Corporation.

Tasnee’s 1.2 million-tonne-a-year cracker is being built by a German/South Korean consortium of Linde and Samsung Engineering Company (MEED 10:3:06). The next petrochemicals financing in the kingdom to hit the market is likely to be for the YanSab project, for which the preliminary information memorandum (PIM) is due to be issued imminently. A team of ABN Amro and Saudi Hollandi Bank is advising (MEED 22:7:05).