Advanced closes SAR 6.1 bln Islamic facilities for subsidiary

Logo of Advanced Petrochemical Co.

Advanced Petrochemical Co. closed, on Dec. 4, SAR 6.1 billion Shariah-compliant financing facilities for its subsidiary, Advanced Polyolefins Industry Co. (Advanced Polyolefins), according to a statement to Tadawul.   

The facilities aimed to finance the construction of the propane dehydrogenation, polypropylene and isopropanol plants in Jubail Industrial City.   

The financial close was achieved after satisfying all requirements and conditions precedent for availability of financing under the senior debt facilities arranged on a non-recourse basis concluded between Advanced Polyolefins and a consortium of financial institutions.  

The consortium includes Alinma Bank, Al Rajhi Bank, Arab National Bank, Arab Petroleum Investments Corporation (APICORP), Bank Albilad, Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank.  

Advanced Polyolefins is a joint venture between Advanced Global Investment Co. (a 100% owned subsidiary of Advanced) and SK Gas Petrochemical PTE. Ltd. (a subsidiary of SK Gas Co. Ltd.) to produce 843,000 tons per annum (tpa) of propylene, 800,000 tpa of polypropylene and 70,000 tpa of isopropanol.  

The project completed more than 45% of the engineering, procurements and construction activities as of Nov. 30, 2022, and is scheduled to commence commercial operations in H2 2024, the statement noted.  

In July, Advanced announced that Advanced Polyolefins had signed various Islamic facilities agreements with financing entities, with a total value of SAR 6.1 billion, Argaam reported.