Sabic affiliate National Industrial Gases Company (GAS) has signed a SR1.2 billion ($320.6 billion) Islamic loan agreement with Banque Saudi Fransi (BSF).

As per the agreement BSF will be the financial advisor for GAS and lead arranger for the company’s expansion projects at its plants in Jubail and Yanbu.
The loan was signed on behalf of GAS by Ibrahim Al-Shuweir, Sabic’s VP for corporate control and chairman of the Board of Directors for GAS.
Mohamed Al-Mady, Sabic Vice-Chairman and CEO, said, “The new expansion projects of GAS will increase the total annual capacity of its complexes in Jubail and Yanbu to seven million tonnes. Production is scheduled to begin in the first quarter of 2008 to meet the oxygen requirements of Sabic plants and other industrial businesses.”
GAS is a symbol of cooperation between Sabic and a group of national industrial gas companies, which own a 30 per cent stake in the company.
Sabic owns the remaining 70 per cent.
Sabic prioritises the use of Islamic financing as part of its strategy to diversify its sources of funding.