Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical, confirmed on Monday that it had signed loan facilities to support the construction of a $19.3 billion petrochemical complex.
Loan agreements worth 39.375bn riyals ($10.5bn) were signed on Sunday with local and foreign banks, Export Development Bank Canada, Islamic Development Bank, the Saudi Public Investment Fund and export credit agencies, the statement to the Saudi stock exchange said.
The loans will run until June 30, 2025, with the first drawdown of funds expected in the third quarter of 2013. Added to a 7.5bn riyal sukuk (Islamic bonds) sold at the beginning of April, the total financing package for the plant totaled 46.88bn riyals, the statement added.
Reuters reported on Sunday that loan agreements had been signed for a financing package worth around $12.5bn, citing banking sources.
The facility, located at Jubail Industrial City in Saudi Arabia’s Eastern Province, will be the world’s largest chemical complex ever built in a single phase. It will produce over 3 million tonnes of petrochemicals a year when completed in 2016.
Also included is a $4.975 billion direct loan from the U.S. Export-Import Bank. Signed in September, it was the largest ever loan from the institution.