JEDDAH, 12 June 2007 -- Saudi International Petrochemical Company (Sipchem) signed SR2 billion Islamic compliant Ijara facilities with 5 regional banks.
The funds are for supporting Sipchem's new project developments that include the Jubail Acetyls Complex Project (JAC Project) and the mega Olefins Complex. Ahmad Al-Ohali, executive president and board member, signed the facilities agreements with Riyad Bank, SABB, Al-Rajhi Bank, Bank Al-Jazira and Arab Investment Company.
The three affiliates of Saudi International Petrochemical Company in the JAC Project namely, International Acetyl Company (IAC), International Vinyl Acetate Monomer Company (IVAC) and United Industrial Gases Company (UIGC), signed a combined project finance loan facility of $565 million (SR2.1 billion) with nine regional banks in December 2006.
The JAC Project comprises of three plants -- the 460 thousand metric tons per annum (mtpa) acetic acid plant, the 330 thousands mtpa vinyl acetate monomer plant and the 345 thousands mtpa carbon monoxide plant.
All three plants are expected to be operational in the first quarter of 2009. The other major project under development is the Olefins and derivatives complex which comprises of 16 plants planned to be constructed in Jubail 2. The entire complex is estimated to cost more than $7 billion.
Al-Ohali said these new facilities follows the successful SR535 million Islamic financing of the International Methanol Company closed earlier this year.
© Arab News 2007
