National Industrialization Company (Tasnee) said its 60%-owned joint venture has secured a Shariah-compliant long-term financing worth 1.7 billion Saudi riyal ($453.34 million) to fund its ethylene cracker plant.

The loan was obtained by Saudi Ethylene & Polyethylene Company (SEPC) from Bank Albilad, Tasnee said in a statement. 

The credit facility has a 12-year term, including a two-year grace period. It has been guaranteed through promissory notes issued by SEPC covering the full facility value, along with guarantees from the JV partners.  

In December 2023, Tasnee awarded the engineering, procurement, and construction (EPC) contract, valued at $500 million, to expand the ethylene cracker plant.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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