Sadara gets bank offers to finance $20 bln complex

SADARA chemicals, a joint venture between ARAMCO and Dow chemicals company, received bank offers to finance its $20 billion complex in Jubail, MEED reported.

MEED added that 16 international banks as well as local banks have submitted their offers to finance the commercial banks’ tranche amounting to $ 2.7bn, and that the offered funding has surpassed the required funding although details and amounts of these offers have not been announced.

The projects financing plan is divided into two parts as follows:

• $ 12.4bn credit distributed as follows:
  1.  $ 6.5bn by export credit agencies.
  2.  $ 2.7bn by commercial banks.
  3.  $ 1.4bn Sukuk.
  4.  $ 1.3bn by public investments fund.
  5.  $ 530m by Saudi Industrial Development Fund SIDF.
•  Owners and shareholders contributions.

According to Meed; the commercial banks tranche, in spite of being fully covered, could be reduced because of the expectations of raising the export credit agencies and SIDF tranches as well as issuing sukuk by the year end.

It’s noteworthy that ARAMCO and DOW are looking for low interest rates credits.