Saudi Farabi Petrochemicals shortlists banks for SAR 4 bln project: report

Saudi Arabia’s Farabi Petrochemicals Co. has shortlisted banks to finance its new petrochemical complex worth SAR 4 billion ($1.1 billion) in Yanbu, Reuters reported on Wednesday, citing unnamed sources with knowledge of the matter.

The company will secure a loan of SAR 3 billion for the project, of which the Saudi Industrial Development Fund (SIDF) is expected to provide SAR 1.2 billion. Other banks will provide the SAR 1.7 billion finance.

The financing is likely to be closed in Q2 2018.

HSBC is advising Farabi on financing for the new project, the sources added.

Established in 2002, the petrochemical producer currently has production facilities at Jubail industrial city, where it produces petrochemical products such as paraffin and benzene.

Indian construction engineering firm Larsen & Toubro was selected by Farabi as engineering, procurement and construction contractor for the Yanbu complex.