Sipchem unit secures loan for new project
Jeddah, June 16, 2013
Saudi International Petrochemical Company (Sipchem) said its affiliate, International Polymers Company (IPC), has signed a SR704 million ($188 million) loan deal with the Public Investment Bank (PIF) to fund its greenfield plant in Jubail.
The plant will produce Ethylene Vinyl Acetate (Eva) and low density poly ethylene (LDPE) with an annual production capacity of 200,000 MT in its industrial complex in Jubail Industrial City, said Sipchem president (Operations) Abdullah S. Al-Saadoon after signing the agreement with PIF director general Abdulrahman M. Al-Mufedhi.
Eva is used as a feedstock in the production of heat soluble adhesives, resin products and high-quality sports bandages; while LDPE is used as a feedstock in the production of various types of containers, bottles and medical detergents, said a statement from Sipchem.
The plant start-up is scheduled in the third quarter of 2013, it added.
The loan is repayable over 14 years in 26 semiannual and equal installments starting from December 2014, said the company statement. It is payable by June 30, 2027 and secured until the completion of the greenfield Eva/LDPE plant by order notes.
IPC is jointly owned by Sipchem which has 75 per cent stake and Hanwha Chemical Corporation.
Sipchem said IPC had earlier signed a deal with Saudi Industrial Development Fund for a SR600 million loan besides a Shariah compliant SR1.4 billion loan (including bridge facilities) with four major Saudi banks.-TradeArabia News Service