Saudi Arabia’s Al-Inma Bank and Al-Bilad bank have provided a 1.7 billion Saudi riyals ($453.2 million) Shariah-compliant credit facility to InoChem, which is 30 percent owned by Sahara Petrochemicals Company.

InoChem will build, own, and operate an industrial complex in Saudi’s Ras Al-Khair Industrial City to produce soda ash. The firm is set to become the Gulf region’s largest producer of this product with a capacity of 600,000 tonnes per annum expected from the first phase. Production will start during the first half of 2022.

Saudi International Petrochemical Co. (Sipchem), which fully owns Sahara Petrochemicals Company, said in a bourse filing that the purpose of the credit facility is to finance developing and operating a soda ash and calcium chloride production complex in two grades.

The credit facility is for 13 years and includes an 875 million Saudi riyals ($233 million) long-term loan and an 825 million Saudi riyals ($220 million) bridge loan.

(Writing by Nada Al Rifai nada.rifai@refinitiv.com, editing by Seban Scaria)

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