Advanced Petrochemical Company (APC), Saudi Arabia announces the financial close for the financing of SR 6.1 billion Shari’ah Compliant Islamic Facilities by Advanced Polyolefins Industry Company (Advanced Polyolefins), a subsidiary company, to finance the construction of Propane Dehydrogenation, Polypropylene and Isopropanol plants in Jubail Industrial City, Kingdom of Saudi Arabia.
This follows the signing of various Islamic Facility Agreements with a consortium of financial institutions announced on July 6, 2022.
Financial Close for these Islamic facilities was achieved on December 04, 2022 after satisfying all requirements and conditions precedent for availability of financing under these senior debt facilities arranged on a non-recourse basis concluded between Advanced Polyolefins and a consortium of financial institutions comprising Alinma Bank, Al Rajhi Banking and Investment Corporation, Arab National Bank, Arab Petroleum Investments Corporation, Bank Albilad, Banque Saudi Fransi, Riyad Bank, The Saudi British Bank and The Saudi National Bank.
It is worthwhile to note that Advanced Polyolefins is a joint venture between Advanced Global Investment Company (a 100% owned subsidiary of ADVANCED) and SK Gas Petrochemical Pte. Ltd. (a subsidiary of SK Gas Co., Ltd.) to produce 843,000 tons per annum Propylene, 800,000 tons per annum Polypropylene and 70,000 tons per annum Isopropanol.
Achieving the financial close constitutes a major milestone for the success of the Project which has already completed more than 45% of engineering, procurement and construction activities as of end of November 2022 and is scheduled to commence commercial operations in the 2nd half of 2024.
