Gulf Oil and Gas accountACCOUNT

SABIC Appoints Financial Advisors and Lead Arrangers for Saudi Kayan

Source: 7/15/2006, Location: Middle East

Saudi Basic Industries Corporation (SABIC), entered into agreement with BNP Paribas, Arab Banking Corporation ABC and SAMBA as financial advisors and lead arrangers for approximately US$ 4.8 billion loan for SABIC affiliate, SAUDI KAYAN. The Saudi Kayan Company, currently under formation, plans to construct a world scale giant petrochemical complex in Al-Jubail, Kingdom of Saudi Arabia, with an annual capacity exceeding 4 million metric tons of chemical products, some of which will be manufactured for the first time in the Kingdom of Saudi Arabia.

SABIC also signed today, an agreement with SAMBA Financial Group appointing it as financial advisor and IPO manager for the Saudi Kayan Petrochemical Company's public subscription. The new company will offer 45% of its capital for public subscription, most likely in 4Q2006, after obtaining necessary approvals.

Mutlaq Al-Morished, Vice President, SABIC Corporate Finance signed both agreements at SABIC headquarters in Riyadh in the presence of Mr. Mohamed Al-Mady, SABIC Vice Chairman and CEO and Mr. Issa Ibn Mohammed Al-Issa, SAMBA Managing Director and CEO.

Mohamed Al-Mady, said: "The new company's capital amounts to 12 billion Saudi Riyals. SABIC owns 35% of this capital while KAYAN Petrochemicals Company owns 20%. The remaining 45% shall be offered for public subscription following the approval of the competent authorities.

“The offering of this percentage is consistent with the wise policy pursued by the Saudi government to pave the way for citizens to invest in industrial projects with long-term economic viability, especially since it comes after unprecedented demand experienced by the underwriting of SABIC's YANSAB affiliate".

Mr. Al-Mady expressed great optimism on the future of the new company, especially as it will add new specialized products into the Saudi marketplace that will be produced in Saudi Arabia for the first time. Such products include: aminoethanols, aminomethyls, dimethylformamide, choline chloride, dimethylethanol, dimethylethanolamine, ethoxylates, phenol, cumene and polycarbonate. This is in addition to ethylene, propylene, polypropylene, ethylene glycol, butene-1 and others, all of which contribute to the enrichment of the Saudi petrochemical industries, strengthening SABIC's global competitiveness, and constitute a basis for the development of national downstream industries.

Mr. Al-Issa expressed his thanks to SABIC for its confidence in SAMBA by appointing it as financial adviser to the underwriting of SAUDI KAYAN which represents the culmination of a pioneering role in the management of many successful underwritings of other important clients in the Kingdom. He emphasized that SAMBA is harnessing its potential for this promising company which is expected to contribute to supporting the national economy.

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

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.