Plastics Portal For Buying And Selling Plastic Products
CONNECTING BUSINESSES IN THE WORLD OF PLASTICS
Go to->Home - PlasticNews
SIPCHEM to raise up to SR 2 bln from a sukuk to fund plant expansions (21-6-2011)
 
Saudi International Petrochemical Co (Sipchem) expects to raise up to 2 bln riyals (US$533.3 mln) from a planned Islamic bond offering to fund plant expansions, as per Reuters. Deutsche Securities, the securities arm of Deutsche Bank, and Riyad Capital were appointed as joint lead managers for the sukuk. Under a Mudaraba sukuk, a bank provides capital for a project while an entrepreneur manages the deal. The profits are split according to a pre-determined ratio and the bank bears any monetary losses that arise.
Sipchem, which plans to part-finance three projects worth over US$1 bln with the sukuk sale, began road shows for the bond on Saturday and sees book building to begin next week. 'We target raising 1.5 bln riyals from the issue and the value may rise to 2 bln riyals based on our need and on the offers (from investors),' chief executive Ahmad Al-Ohaly told Reuters. 'So far it is 1.5 billion riyals as a base case,' he said.
Road shows for the local currency sukuk will last 10 working days and the sukuk will be registered in denominations of 100,000 riyals (US$26,000), subject to a minimum initial subscription amount of 1 million riyals. The three projects include a chemical plant in partnership with South Korea's Hanwha Chemical, an ethyl acetate plant fully-owned by Sipchem and a 50:50 joint venture with a Korean firm to build a wiring cable compounding material plant. All the three projects will start production in mid-2013. The total cost of these projects exceeds US$1 billion and will be partly financed from sukuk and through self-financing and loans, the CEO said, adding that the issue would be enough to cover the needed financing. Government-owned institutions like Public Pension Agency, General Organization for Social Insurance and Human Resources Development Fund have expressed interest in the sukuk.
Previous News Previous News
Next News Next News
Forward to friend Forward this news to friend Print this News Print this news
Back
Back To Recent News Archives
Disclaimer
Recent News
• Recycled Polypropylene gets food contact approval from US FDA for 100%
• Driven by plastic modification segment, EPDM market to grow at CAGR of 6.59% uptil 2019
• Showa Denko to dissolve consolidated subsidiary in Indonesia, terminate production of ethyl acetate
• ONGC Mangalore Petrochemicals Ltd to commence paraxylene and benzene production
• California inks USA's first statewide ban on single use plastic bags at grocery and convenience stores
  
Available
UM-10088 Model: IS350GS-10A (1998 & 2000) - Quantity available : 2-set ...
UM-10087 Model: NN-100 For more details & images, please see next pages
UM-10086 JSW 220 ton Injection Molding Machine For more details & images,...
UM-10083 - Width: 780 mm - Diameter die: 150 mm - Gap: 1,0 mm - Diamete...
UM-10082 Model: COEX - Film structure: ABC - Film width: 1600 Extrude...
UM-10081 - Film structure: ABC - Material: PE-LD; PE-LLD; EVA, PE; Label ...
UM-10080 4.5" NRM/Brampton Engineering/battenfeld gloucester blown Film Li...
UM-10079 4.5" Gloucester/Brampton Mono-layer Blown Film extrusion Line pre...
UM-10078 - 4.5" Gloucester 30/1 l/d Lowboy extruder - With electrically h...
UM-10076 1) Model: ES400 connector-1EN1 - Screw diameter: 19 mm - Abrasi...