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Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical, has signed a fundraising package for a $19.3 billion petrochemical complex being built in the east of Saudi Arabia.
Three banking sources told Reuters that the financing package totals around $12.5 billion and consists of loans from banks, export credit agencies and the state-owned Public Investment Fund. Proceeds from an Islamic bond issue will also be used. The remaining costs will be met by the two partners.
Located in Jubail City, the facility will be the world’s largest chemical complex ever built in a single phase. It will produce more than three million tonnes of petrochemicals each year when completed in 2016.
Sadara was not immediately available for comment. The sources spoke on condition of anonymity as the matter has not been made public.
The split between the different portions of the facility were changed from an original outline released in May 2012 after the success of the sukuk, which was completed at the start of April, two of the bankers said.
Sadara raised $2 billion from the local currency Islamic bond, having increased the deal size from $1.39 billion on strong demand from investors.
Also included is a $4.975 billion direct loan from the US Export-Import Bank.
Signed in September, it was the largest ever loan from the institution.