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.