Gulf Oil and Gas accountACCOUNT

Sipchem Signs Shariah-Complaint Finance Deal

Source: www.gulfoilandgas.com 5/31/2012, Location: Middle East

Saudi International Petrochemical Company (Sipchem) announced that its affiliate, International Polymers Company (IPC) has signed on 31 May 2012 a Shariah compliant SR 1.4 billion (US$ 375 million) loan and bridge facilities with four major Saudi banks, Riyad Bank, National Commercial Bank, Saudi Hollandi Bank, and the Saudi British Bank.

The purpose of these facilities is to support the project financing of a Greenfield EVA/LDPE plant. The plant, which is currently under construction by G.S. Engineering & Construction Corporation of Korea will produce Ethylene Vinyl Acetate (EVA) and Low Density Poly Ethylene (LDPE) with an annual production capacity of 200 thousand metric tons in its industrial complex in Jubail Industrial City. Plant start-up is scheduled in the second half of 2013.

The financing agreements have been signed by Eng. Abdullah S. Al-Saadoon, President Operations, and the executives of the concerned banks. The total project cost of SR 3 billion are being funded through Islamic loan facilities, shareholders equity and facilities from both SIDF & PIF. The bank debt amount will be scaled down by up to 50% once the PIF facility is signed in the future.

EVA is used as a feedstock in the production of heat soluble adhesives, resin products and high-quality sports bandages; while LDPE is used as a feedstock in the production of various types of containers, bottles and medical detergents.

IPC is jointly owned by Sipchem (75%) and Hanwha Chemical Corporation (25%). HSBC Saudi Arabia Limited acted as the financial advisor and Norton Rose as the legal counsel for the project and its sponsors.

Financials and Investment News in Saudi Arabia >>

Brazil >>  4/17/2019 - Petrobras has received correspondence from Caixa Economica Federal ("Caixa") informing that it is studying the possibility of selling shares that they...
Botswana >>  4/16/2019 - Tlou Energy Limited is pleased to confirm that it has successfully completed an equity placement to Sophisticated Investors totalling BWP21.8 million ...

Egypt >>  4/16/2019 - A finance ministry report on Egypt’s new budget (2019/20) showed that fuel subsidies will be reduced by EGP 36.112 billion (40 percent) in the new fis...
Ecuador >>  4/15/2019 - The Supreme Court of the Netherlands has ruled in favor of Chevron Corporation, rejecting the Republic of Ecuador’s attempts to annul decisions of an ...

United Kingdom >>  4/15/2019 - MX Oil plc, an oil and gas investing company quoted on AIM, announces the following corporate update: ...
Australia >>  4/12/2019 - Japan Oil, Gas and Metals National Corporation (JOGMEC) announced that it will provide equity financing to INPEX Offshore Timor-Leste, Ltd. (INPEX Off...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Saudi Arabia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |

Oil & Gas Projects in Saudi Arabia >>

More News

Related Links

AE BH IL IQ JO KW LB OM QA SA SY YE
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.