Sahara International Petrochemical Co. (Sipchem) said that Khair Inorganic Chemical Industries (InoChem), its 30%-owned affiliate through Sahara Petrochemical Co.,secured a total of SAR 1.7 billion of Shariah-compliant credit facility from Alinma Bank and Bank Albilad.
The facility is divided into a SAR 875 million long-term loan, and SAR 825 million bridge loan, Sipchem said in a bourse filing.
The 13-year facility will be used to develop, construct, and operate an industrial complex at Ras Al-Khair Industrial City to produce soda ash in two grades (light and dense) and calcium chloride in two grades, the statement also said.
The total production capacity in the first phase is expected to be 600,000 tons per annum, making the company the largest producer of these products in the GCC region.
The production is expected to start in the first half of 2022, the statement added.
The facility was secured by a project completion cost overruns guarantee and debt service for the first 2 operating years.
According to the data available with Argaam, Sahara Petrochemical Co. in 2018 acquired a 30% stake, or 24 million shares, from Sanabil Investments in InoChem for SAR 242 million.
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