Saudi International Petrochemical Company (Sipchem) announced that Sipchem Chemcials Company L.L.C. (Sipchem owns 95% of its capital) has signed a loan agreement with Saudi Industrial Development Fund (SIDF) of SAR 257.5 million on Monday 24 Rajab 1434 H and corresponding to June 3, 2013 H, payable in ten years including a three years grace period, on six months basis with increasing installments based on project cash flow.
The Agreement has been signed by Mr. Ali H. Al-Sharif, Assistant Director General - Projects of SIDF and Eng. Abdullah S. Al-Saadoon, Sipchem President, Operation. Partners Guarantees, Promissory Notes and Plant Mortgage have been provided to the fund for this financing.
The purpose of this loan facility is to support the financing of the construction of PBT plant.
This plant will produce POLYBUTYLENE TEREPHTHALATE (PBT) with an annual production capacity of 63 thousand metric tons in its industrial complex in Jubail Industrial City.
PBT is used as a feedstock in the production of automotive industry, electrical and electronics and IT materials.
The integration of using Butanediol product as feedstock to the PBT project with the will add value to Sipchem.
The whole marketing of the products will be done by Sipchem.
The cost of the project is estimated at 617 million Saudi Riyals.
The remaining cost will be funded by shareholders and banks.
The start-up of the plant is scheduled on end of next year.
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