Petrochemical
Advanced Petrochemical secures loan for Jubail PDH, PP complex
Company has secured funding for three plants with capacities of 843,000 metric tons/year of propylene, 800,000 metric tons/year of PP, and 70,000 metric tons/year of IPA
- By ICN Bureau
| July 10, 2022
Advanced Petrochemical Co. has announced that Advanced Polyolefins Industry Co., a subsidiary company, has signed SR6.1 bn ($1.6 bn) of facilities with a consortium of financial institutions for the construction of three plants at Jubail Industrial City 2.
The Sharia-compliant financing will fund construction of plants with capacities of 843,000 metric tons/year of propylene, 800,000 metric tons/year of PP, and 70,000 metric tons/year of IPA.
The company signed the facility agreements with a consortium of financial institutions, which include the following banks:
- Alinma Bank
- Al-Rajhi Banking and Investment Corporation
- Arab National Bank
- Arab Petroleum Investments Corporation
- Bank Albilad
- Banque Saudi Fransi
- Riyad Bank
- Saudi British Bank
- Saudi National Bank
The facilities comprise a base facility of SR4.7 bn, a standby facility of SR438 mn, and a bridge murabaha facility of SR600 mn.
The base and standby facilities are repayable in 22 unequal semi-annual installments starting from 31 May 2025 until 20 November 2035. The bridge and VAT murabaha facilities will be payable no later than 31 May 2026.
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