Riyadh – Mubasher: Saudi Kayan Petrochemical on Tuesday announced signing Islamic Murabaha facilities with the National Commercial Bank (NCB) worth a total of $1.35 billion (SAR 5.06 billion).
The loans are guaranteed by the Saudi Basic Industries Corp (SABIC), a majority shareholder in Saudi Kayan, the petrochemical company said in a statement to the Saudi Stock Exchange (Tadawul).
The five-year deal signed Monday involves a $1.2 billion (SAR 4.5 billion) facility that will be used to repay an NCB-existing loan that was previously used to finance Saudi Kayan’s projects.
The previous NCB loan was a seven-year facility signed on 14 August 2010 and was scheduled to be repaid on 16 August 2017.
Saudi Kayan signed another $150 million facility to finance its expansions and relieve its bottlenecks.
The company’s expansions involve raising ethylene production to no less than 93,000 tonnes per year, increasing the capacity of pure ethylene oxide to no less than 61,000 tonnes per year, the statement showed.
The five-year agreements, both backed by SABIC, are scheduled to be repaid in full on 16 August 2022, the Saudi petrochemical company concluded.
By 12:50 pm, Saudi Kayan’s stock was stable at SAR 8.59 on Tadawul.
