KHOBAR: Saudi International Petrochemical Co. said on Saturday its polymers affiliate has signed a 1.4 billion Saudi riyal ($373.3 million) loan agreement to finance the construction of a petrochemical project in Saudi Arabia.
The Islamic-compliant loan signed with four Saudi banks - Riyadh Bank, National Commercial Bank, Bank Saudi Hollandi, and Saudi British Bank - will help finance half of the project's cost, which is estimated at 3 billion riyals, Sipchem said in a statement to the stock exchange.
The affiliate International Polymers Company (IPC) is 75 percent owned by Sipchem, and the remainder is owned by South Korea's Hanwha Chemical. The plant in Jubail, due to start work in mid-2013, would produce an annual 200,000 tonnes of ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE).
It would start repaying the loan in two and a half years on the basis of a half-year installment, Sipchem said.
South Korea's G.S. Engineering and Construction is conducting engineering, procurement and construction (EPC) work.
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