Sipchem signs SR2 bln Islamic compliant Ijara facilities

12-Jun-07

Saudi International Petrochemical Company (Sipchem) has signed SR2 billion Islamic compliant Ijara facilities with 5 regional banks, for supporting Sipchem's new project developments that include the Jubail Acetyls Complex Project (JAC Project) and the mega Olefins Complex. The three affiliates of Saudi International Petrochemical Company in the JAC Project- International Acetyl Company (IAC), International Vinyl Acetate Monomer Company (IVAC) and United Industrial Gases Company (UIGC), signed a combined project finance loan facility of US$565 million (SR2.1 billion) with nine regional banks in December 2006. The JAC Project comprises of three plants - a 460,000 tpa acetic acid plant, a 330,000 tpa vinyl acetate monomer plant and a 345,000 tpa carbon monoxide plant. All three plants are expected to be operational in Q1-2009. The other major project under development is the Olefins and derivatives complex which comprises of 16 plants planned to be constructed in Jubail 2. The entire complex is estimated to cost more than $7 billion.