National Industrialization Co (Tasnee) and Sahara Petrochemical have agreed a 5.09 billion riyal ($1.36 billion) loan with nine local banks to fund development of three new factories.

The 16-year syndicated loan will finance investment in a new complex producing acrylic acid derivatives, the Saudi Arabian petrochemical producers said on Tuesday.

Operations at Saudi Acrylic Monomer Company, Saudi Acrylic Acid Co and Saudi Superabsorbent Polymers Co in Jubail Industrial City on the kingdom's Gulf coast, are scheduled to start in the first quarter of next year, they said.

The project is a joint venture with Dow Chemical Co  and Evonik.

The loan was syndicated among local banks including Al-Rajhi Banking and Investment Corp, Alinma Bank, Riyad Bank, Samba Financial Group, Saudi British Bank, Banque Saudi Fransi, National Commercial Bank and Saudi Hollandi Bank, Tasnee said.

Tasnee will meet investors this week ahead of a potential debut Islamic bond, it said last week. - Reuters