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

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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.

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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.