AN affiliate of the Saudi Basic Industries Corporation (Sabic), the Saudi Kayan Petrochemical Company (Saudi Kayan), has entered into $6 billion (SR22.5 billion) financing arrangements for 15 years with a group of banks and financial institutions to finance part of the cost of its new complex in Jubail Industrial City.

The complex will be the world’s largest integrated petrochemical complex.
The financing package is diverse and includes local, regional, international, Islamic and export credit agency debt.
Saudi Kayan was advised by Arab Banking Corporation, BNP Paribas and Samba. The initial mandated lead arrangers are ABN Amro Bank, Arab Banking Corporation, BNP Paribas, HSBC Bank and Samba Financial Group.
The export credit agencies are ECGD, KEIC, K-Exim and Sace. The Public Investment Fund of Saudi Arabia is also financing the project.
Al Rajhi Banking & Investment Corporation is providing an Islamic working capital facility.
Mutlaq Hamad Al-Morished, Saudi Kayan chairman and Sabic vice president, corporate finance, signed the agreements on behalf of Saudi Kayan.
The Saudi Kayan complex, currently under construction, is expected to go on-stream in the fourth quarter of 2010 with a total annual capacity of approximately 6 mta of a variety of petrochemical products including ethylene, propylene, polyethylene, polypropylene and ethylene glycol. It will also manufacture a series of specialised products that will be produced locally for the first time.