16 June 2013
JUBAIL -- Sadara Chemical Company is aiming to reach financial close on the SR7.5 billion funding for the project by mid-June.
The funding should be finalized and signed by the end of June, according to bankers close to the deal.
Following the successful completion of a SR7.5 billion sukuk (Islamic bond) issue in April, the two sponsors behind the project are now pushing to reach financial close on the rest of the funding as quickly as possible.
One banker close to the project said strong demand for the sukuk, which was much larger than the SR5.25 billion envisaged in the original financing plan, means the commercial bank tranche is set to be "less than half" the SR10.1 billion Sadara approached banks for.
The rest of the SR46.5 billion debt for the project, a joint venture of Saudi Aramco and the US' Dow Chemical, will come from export credit agencies SR27 billion and the Public Investment Fund SR4.9 billion.
Once completed, the deal will be the biggest project finance transaction in the Middle East for several years when the financing for the project was originally launched.
JUBAIL -- Sadara Chemical Company is aiming to reach financial close on the SR7.5 billion funding for the project by mid-June.
The funding should be finalized and signed by the end of June, according to bankers close to the deal.
Following the successful completion of a SR7.5 billion sukuk (Islamic bond) issue in April, the two sponsors behind the project are now pushing to reach financial close on the rest of the funding as quickly as possible.
One banker close to the project said strong demand for the sukuk, which was much larger than the SR5.25 billion envisaged in the original financing plan, means the commercial bank tranche is set to be "less than half" the SR10.1 billion Sadara approached banks for.
The rest of the SR46.5 billion debt for the project, a joint venture of Saudi Aramco and the US' Dow Chemical, will come from export credit agencies SR27 billion and the Public Investment Fund SR4.9 billion.
Once completed, the deal will be the biggest project finance transaction in the Middle East for several years when the financing for the project was originally launched.
© The Saudi Gazette 2013
