Saudi Kayan inks murabaha facility agreement with Banque Saudi Fransi to cover construction costs

21-Mar-11

Saudi Kayan Petrochemicals has signed a SR 2 bln (US$533.3 mln) murabaha facility agreement with Banque Saudi Fransi to cover construction costs. The ten year loan is to fund part of the additional costs of its complex in Jubail Industrial city, and is guaranteed by Saudi Basic Industries Corp (SABIC), the firm's main shareholder. In a murabaha, a financier such as a bank buys a commodity and sells it to the customer at a higher price, complying with Islam's ban on interest.