Equate Petrochemical Company has signed a financing agreement with 33 leading international, regional and local banks for a US$2.5 billion loan. The 14-year loan is one of the largest commercial loans raised in the GCC and will finance the US$3 billion expansion at Equate's site in the Shuaiba Industrial Area of Kuwait. The loan has the unique distinction of being executed in a record time for a loan of this size and complexity.
Complexity of the loan was a major factor as the expansion is being undertaken in three different companies - Equate and The Kuwait Olefins Company and The Kuwait Styrene Company (specifically set up for the expansion). Adding to the complexity was the fact that the shareholding and the contractual structure are not identical in each case. This matter was sorted out by making Equate the borrower for all the borrowings. Equate will lend loans to the two other companies. This has simplified the loan structure and given the banks the necessary comfort level to offer highly competitive terms from at the same time, because of Equate's excellent track record.
Upon completion of expansion, EQUATE and the related companies will produce 1.2 million tpa ethylene glycol, 850,000 tpa of PE and 450,000 tpa of styrene.
03-Jul-06 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}