Advanced receives SAR 15 bln in financing offers for Jubail project: Sources

Logo of Advanced Petrochemical Co.

Advanced Petrochemical Co. (Advanced) received approximately SAR 15 billion ($4 billion) worth of offers from local banks to finance the Jubail project, CNBC Arabia reported, citing unnamed sources.  

 Banks will get finance charge of nearly 1%, according to the sources. 

In August, Advanced held talks with local banks to secure financing facilities at $1.2 billion to fund the Jubail project, while planning to finance the remaining part via a loan from the Saudi Industrial Development Fund (SIDF) and liquidity by shareholders. The project would be 70% financed through debt. 

Last April, Advanced subsidiary, Advanced Global Investment Co. (AGIC), signed engineering, procurement and construction (EPC) contracts for the construction of propylene and polypropylene plants in Jubail Industrial City II, Argaam reported. 

Moreover, Advanced Board Chairman Khalifa Al Mulhem said earlier the petrochemical company will finance the construction of its propylene and polypropylene plants in Jubail Industrial City II, through SAR 7 billion in loans from SIDF and other local banks, Argaam reported. 

He had indicated that the company obtained SIDF approval to raise SAR 3 billion in loan to partially finance this project, in addition to another loan from local banks, to finance the project. The contribution of banks to the project's funding will reach up to SAR 4 billion.