Saudi Arabia: Dow Chemical Seeks $2bn Bridging Loan for Sadara Project
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Monday, 10 October 2011 |
Dow Chemical has requested a $2bn bridge loan for its $20bn joint venture in Sadara with Saudi Arabian Oil Co from the Saudi government's Public Investment Fund. The Kingdom’s Finance Minister told local TV station Al Arabiya that the company had requested the financing until it is able to borrow from international markets.
The company is aiming to finance a 26 plant chemical complex, Sadara Chemical Co, in partnership with the state-owned oil company. The parties aim to begin construction immediately, with the first output scheduled for the second half of 2015. Aramco’s Chief Executive Officer, Khalid Al Falih, told reporters at the weekend that several financing options were being considered, including Islamic bond issues, the PIF and export credit agencies along with the commercial market.
The Sadara facility will produce polyeurethanes, propylene oxide, propylene glycol, elastomers, linear low-density polyethylene, low density polyethylene, glycol ethers and amines.
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