3 SIPCHEM AFFILIATED COMPANIES SIGN A SAR 1.035 BN REFINANCE AGREEMENT

Saudi International Petrochemical Company Sipchem announces that its affiliates, International Acetyl Company (IAC), 76% owned by Sipchem, International Vinyl Acetate Company (IVC), 76% owned by Sipchem, and International Gas Company (IGC), 72% owned by Sipchem, have completed on Monday 1 Rabi II, 1434 H corresponding to 11 February 2013 the signing of an agreement to refinance the commercial loans obtained by these companies in 2008, through a number of local and international banks in US Dollar to finance building the Acetyl acid plant which belongs to IAC, building the Vinyl Acetate plant which belongs to IVC and building the Carbon Monoxide plant which belongs to the IGC, all are considered the most important projects of the company.
 

As per such refinance agreement IAC, IVC and IGC shall be eligible to convert the current commercial bank loans into long-term financing facilities in Saudi Riyal with Riyad Bank Corporate Banking which acted as the Lead Arranger of the refinance process for an amount of SAR One Billion and Thirty Five Million (1,035,000,000) with a competitive variable interest rate in addition to a six-month grace period as the first installment payment shall be due in the 2nd half of 2013.

 In addition to extending the payment period of the loan for a period from two to four years.