ABN AMRO, Hollandi close project financing

DUBAI — ABN AMRO and Saudi Hollandi Bank day before on Saturday closed Saudi Arabia's largest ever Greenfield project financing for Saudi Basic Industry Corporation's (Sabic) $5 billion subsidiary, Yanbu National Petrochemicals Company (Yansab).

By Staff Reporter

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Published: Sat 24 Jun 2006, 9:32 PM

Last updated: Sat 4 Apr 2015, 1:12 PM

ABN AMRO and its 40 per cent-owned affiliate Saudi Hollandi Bank acted as Financial Advisor to Yansab on the deal which raised $3.5 billion of debt.

ABN AMRO acted as the sole Bookrunner and Initial Mandated Lead Arranger, fully underwriting the commercial debt financing. The deal was syndicated to a well-diversified group of local/regional and international banks. This is the largest ever deal in the Middle East and North Africa that was done on a sole bookrunning basis.

Yansab and its advisors sought to maximise the use of Islamic loans, raising close to $850 million making this the largest Islamic tranche in any multi-sourced project financing closed to date globally. Public Investment Fund (PIF) participation was also maximised at SR4 billion ($1.067 billion) in a strong show of confidence in the project.

Islamic Development Bank (IDB) participated for $125 million in the Islamic tranche. European Export Credit Agencies, ECGD of the UK and SACE of Italy, also provided comprehensive cover for loans from commercial banks totalling $700 million. The balance of the required funding came from 19 domestic, regional and international banks. The deal was significantly oversubscribed and a general syndication phase was expected to follow the senior phase. However as a result of the first phase success, ABN AMRO, as sole Bookrunner, in consultation with Yansab decided to close the deal without any general syndication.

Mutlaq Al-Morished, Chairman of the Board of Directors of Yansab and Sabic Vice-President for Corporate Finance, commented: "This broad participation clearly reflects the confidence of these institutions in the future of Yansab and the petrochemical industry in the Kingdom of Saudi Arabia as a whole."

Colin Macdonald, Country Executive UAE and Regional Head Middle East at ABN AMRO said: "This transaction underscores ABN AMRO's commitment to the growing business of SABIC and the Saudi economy. Our sector specialists from Dubai and London have worked hard, together with their SABIC and Saudi Hollandi Bank counterparts in the Kingdom, to arrive at an all encompassing financing, which will set the stage for future Petrochemical transactions in the region."

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