SABIC obtains financing for ethylene plant
Saudi Arabian Basic Industries Corp. (SABIC), Riyadh, signed a 4.33 bn riyals ($ 1.154 bn) loan with a consortium of
international and local banks to finance construction of a petrochemical plant for its United Petrochemical
subsidiary at Jubail Industrial City.
SABIC said Riyadh Bank acted as lead manager for the loan, and Gulf International Bank served as independent
financial adviser. The Saudi Public Investment Fund will provide an additional 1.5 bn riyals ($ 400 mm).
The proposed United plant is to start production in the second half of 2004 and will have an annual production
capacity of 1 mm tons of ethylene, 575,000 tons of ethylene glycol, and 150,000 tons of linear alpha olefins.
Another facility, an 800,000 tpy polyethylene plant in which United has a 50 % interest, is currently under
construction in Jubail at the site of SABIC's affiliate Petrokemya (Arabian Petrochemical).
