Advanced subsidiary signs SAR 6.1 bln Sharia-compliant facilities to build new plants

Advanced Petrochemical Co. (Advanced) said its subsidiary, Advanced Polyolefins Industry Co. (APOC), signed, on July 5, several Sharia-compliant facility agreements with a consortium of financial institutions worth SAR 6.1 billion to fund the construction of the plants at Jubail Industrial City II.

The construction includes plants for propane dehydrogenation (PDH), polypropylene (PP) and isopropanol (PA).

Alinma Bank, Al Rajhi Bank, Arab National Bank, Arab Petroleum Investments Corp., Bank Albilad, Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank participated in the funding.

The total credit facilities consist of a SAR 4.7 billion base facility, SAR 438 million standby facility, SAR 600 million bridge Murabaha facility and SAR 356 million VAT Murabaha facility.

The base and standby facilities are repayable in 22 unequal semi-annual installments starting May 31, 2025, until Nov. 30, 2035. The bridge and VAT Murabaha facilities will be payable no later than May 31, 2026.

Advanced offered guarantees of a debt service undertaking of up to $250 million and a pledge of the shareholders’ shares in APOC.

The Islamic facility agreements will be utilized to finance the construction of PDH, PP, and IPA plants with a nameplate capacity to produce 843,000 tons per annum of propylene, 800,000 tons per annum of polypropylene, and 70,000 tons per annum of isopropanol.

There are no related parties involved.

Any significant development related to the agreements will be announced in due course, the statement noted.