Saudi Kayan signs $6b financing arrangement

JEDDAH — Saudi Kayan Petrochemical Company (Saudi Kayan), an affiliate of the Saudi Basic Industries Corporation (Sabic) on Saturday entered into a $6 billion (Saudi Riyal 22.5 billion) financing arrangements for 15 years with a group of banks and financial institutions to finance part of the cost of its new complex in Jubail Industrial City. The complex will be the world’s largest integrated petrochemical complex.

By From Our Correspondent

Published: Tue 3 Jun 2008, 12:34 AM

Last updated: Sun 5 Apr 2015, 1:06 PM

According to information made available to Khaleej Times here yesterday, the financing package is diverse and includes local, regional, international, Islamic and export credit agency debt. Saudi Kayan was advised by Arab Banking Corporation, BNP Paribas and Samba. The initial Mandated Lead Arrangers are ABN Amro Bank N.V., Arab Banking Corporation, BNP Paribas, HSBC Bank plc and Samba Financial Group. The export credit agencies are ECGD, KEIC, K-EXIM and SACE. The Public Investment Fund of Saudi Arabia is also financing the project. Al Rajhi Banking and Investment Corporation is providing an Islamic working capital facility.

Mutlaq Hamad Al Morished, Saudi Kayan Chairman and Sabic vice-president, corporate finance stressed Sabic’s keenness to diversify the sources of financing for its projects and to optimise the utilisation of available funding sources, especially Islamic financing.

Sabic holds a 35 per cent of the shareholding in Saudi Kayan with a private shareholder, Al Kayan Petrochemical Company, holding a further 20 per cent. The remaining 45 per cent is held by Saudi shareholders following an initial public offering last year.

The Saudi Kayan complex, currently under construction, is expected to go on-stream in the fourth quarter of 2010 with a total annual capacity of approximately 6 MTA of a variety of petrochemical products including ethylene, propylene, polyethylene, polypropylene and ethylene glycol. It will also manufacture a series of specialised products that will be produced locally for the first time. They include aminoethanols, aminomethyls, dimethylformamide, dimethylethanol, dimethylethanolamine, ethoxylates, polycarbonate and acetone.

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