Rabigh Refining and Petrochemical Company (Petro Rabigh) has announced that it has secured alternative sharia-compliant banking facilities from the Saudi Industrial Development Fund (SIDF) worth SR3.6 billion ($959 million).
PetroRabigh is a joint venture between state oil giant Saudi Aramco and Japan's Sumitomo Chemical, which engages in the development, construction, and operation of an integrated refining and petrochemical complex.
The key Islamic funding facility, which has been guaranteed by a promissory note, will be used for refinancing existing debts with better terms and conditions and repayment period, in addition to settling other loans, which will reflect positively on the company and its shareholders, said Petro Rabigh in its filing to the Saudi bourse Tadawul.
Under the 12-year facility, Petro Rabigh is granted a grace period until May next year.
Petro Rabigh had in September announced three joint revolving loans and facility agreements valued at SR7.5 billion with the key lenders being Saudi Aramco and Sumika Finance Company.