Sipchem's IPC signs loan agreement

US$ 188 million financial agreement with Public Investment Fund

Ahmed Al-Ohali, Sipchem CEO.
Ahmed Al-Ohali, Sipchem CEO.

Saudi International Petrochemical Company (Sipchem) announced that its affiliate, International Polymers Company (IPC) has signed on 10 June 2013 a financing agreement of SR 704 million (US$ 188 million) with Public Investment Fund (PIF).

The loan is repayable over 14 years in 26 semiannual and equal installments commencing December 2014.

The loan is payable until 30 June 2027 and secured until project completion by order notes. The purpose of this agreement is to support the project financing of a greenfield EVA/LDPE plant.

The plant will produce Ethylene Vinyl Acetate EVA and Low Density Poly Ethylene LDPE with an annual production capacity of 200 thousand metric tons in its industrial complex in Jubail Industrial City. Plant start-up is scheduled in the third quarter of 2013.

The financing agreements have been signed by Mr. Abdulrahman M. Al-Mufedhi, Director General of the Public Investment Fund and Eng. Abdullah S. Al-Saadoon, Sipchem President Operations.

EVA is used as a feedstock in the production of heat soluble adhesives, resin products and high-quality sports bandages; while LDPE is used as a feedstock in the production of various types of containers, bottles and medical detergents.

IPC is jointly owned by Sipchem 75% and Hanwha Chemical Corporation 25%. Sipchem had previously announced on November 19, 2011 that its affiliate, International Polymers Company IPC, has signed with Saudi Industrial Development Fund SIDF a SR 600 million US$ 160 million loan facility Agreement, and on 02 June, 2012 has signed a Shariah compliant SR 1.4 billion (US$ 375 million) loan (including bridge facilities) with four major Saudi banks.

For all the latest refining and petrochemical news from the Middle East countries, follow us on Twitter and LinkedIn, like us on Facebook.