Tasnee PIM issued

16 January 2006
Banks have been asked to respond by mid-February to the preliminary information memorandum (PIM) on the debt package for the Jubail cracker project planned by the local Tasnee Petrochemicals. HSBCwith local affiliate Saudi British Bank (SABB)is acting as financial adviser (MEED 23:12:05).
The 15-year commercial tranche is worth $500 million, while export credit agencies (ECAs) will provide about $1,000 million of either coverage or direct loans. The four ECAs on board are Germany's Hermes, Italy's Sace, Export-Import Bank of Korea and Korea Export Insurance Corporation. The PIM is understood to have been sent to about 30 banks. The Saudi Industrial Development Fund will extend up to $107 million and the Public Investment Fund will provide $300 million-500 million. Financial close is due by the end of the first quarter.

The next petrochemicals project to be financed in the kingdom is likely to be the YanSab complex planned by Saudi Basic Industries Corporation (Sabic). A PIM on the estimated $3,500 million debt package is expected imminently. ABN Amroand Saudi Hollandi Bankare advising (MEED 22:7:05).

Mandated lead arrangers are also due to be appointed imminently on the financings of Al-Waha petrochemicals project planned by the local Sahara Petrochemical Companyand the phase-2 expansion of the Saudi International Petrochemical (Sipchem)plant, both at Jubail. HSBC and SABB are the advisers (MEED 25:11:05).


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