Tuesday, May 08, 2012
RIYADH (Zawya Dow Jones)--Saudi Arabia's Sahara Petrochemical Co.(2260.SA) said Tuesday a number of its affiliates inked Shariah-compliant financing agreements worth 5.1 billion Saudi riyals ($1.4 billon) with local lenders to finance projects at Jubail Industrial City.
Tasnee & Sahara Olefins Co., Saudi Acrylic Acid Co., Saudi Acrylic Monomers Co., and Saudi Superabsorbent Polymers Co. signed the deals with nine Saudi lenders including Al Rajhi Bank, Samba Financial Group and Banque Saudi Fransi, it said in a statement posted on the Saudi bourse website.
The 16-year loans will be guaranteed by promissory notes and will be repaid on a half-yearly installment basis, it said.
The amount will be used in financing the affiliates' projects in the acrylic acid and its derivatives project located at Jubail Industrial city in partnership with Dow Chemical Co. and Germany's Evonik of Germany.
The project is expected to start operation in the first quarter of 2013.
Sahara shares finished 0.9% lower at SAR16.25 Tuesday.
-By Summer Said, Dow Jones Newswires; +966-546842373; summer.said@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
08-05-12 1500GMT
