Sadara to lend Saudi Hydrogen Peroxide Company SAR 40 mln
Sadara Basic Services Company, which is indirectly wholly-owned by its parent Sadara Chemical Company, has entered into a shareholder loan agreement and a subordinated shareholder loan agreement
with Saudi Hydrogen Peroxide Company, an equally-owned joint venture between Sadara and Solvay Chemicals and Plastics Holding B.V. (Solvay).
The agreement is for the construction and ownership of a hydrogen peroxide plant that will be located within Sadara’s chemical complex in Jubail Industrial City II in the eastern province of Saudi Arabia with a share capital of SAR 40 million. "
Pursuant to the shareholder loan agreement, Sadara agrees to issue shareholder loans for all cash calls made by Saudi Hydrogen Peroxide Company in proportion to its 50 percent ownership in the company," Sadara said on Wednesday in its statement to Tadawul, Saudi Arabia's bourse.
Based on the "subordinated shareholder loan agreement, Sadara agrees to issue a loan to Saudi Hydrogen Peroxide Company in the amount of SAR 40 million," it added.
The repayment of the shareholder loans should take place over a period of approximately eight to 12 years.
Saudi Hydrogen Peroxide Company’s capital is estimated at SAR 242 million. The hydrogen peroxide plant will have a nameplate capacity of 303,000 metric tons per year, which is sufficient to meet 100 percent of Sadara’s hydrogen peroxide requirements, the company said.