Saturday, Jun 02, 2012
RIYADH (Zawya Dow Jones)--International Polymers Co., an affiliate of Saudi International Petrochemical Co. (2310), or Sipchem, has signed for an Islamic loan of 1.4 billion Saudi riyals ($375 million) with four local banks to help finance a petrochemical plant now under construction in Jubail.
Riyad Bank, National Commercial Bank, Saudi Hollandi Bank and Saudi British Bank are providing the loan and bridge facilities, Sipchem said in a statement posted on the Saudi bourse website Saturday.
The loan, which is secured by sponsors guarantees until project completion, is repayable after 2.5 years in semi-annual installments, the statement added.
The facilities will help pay for a factory that will produce ethylene vinyl acetate, or EVA, which is used in the production of heat-soluble adhesives and other goods; and low-density poly ethylene, or LDPE, used as a feedstock in the production of containers, bottles and medical detergents.
The plant, under construction at Jubail Industrial City in eastern Saudi Arabia, is expected to start in the second half of 2013.
International Polymers Co. is jointly owned by Sipchem and Hanwha Chemical Corp.
-By Ellen Knickmeyer, Dow Jones Newswires, +966 1 279 5252,
ellen.knickmeyer@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
02-06-12 0849GMT
