HSBC advises Aromatics Oman on petrochemical complex
HSBC Bank Middle East Limited has acted as financial adviser to Aromatics Oman LLC in the financing of for its new US$1.1 billion petrochemical complex, and has participated inwill join the commercial bank funding of the project as a Mandated Lead Arranger.
Aromatics Oman LLC has meanwhile confirmed that is has committed financing offers of over US$800 million for the project from shareholders and commercial banks and The Export-Import Bank of Korea (‘KEXIM’). This sets a new record for major project development in Oman, with committed financing achieved less than six months after the project was approved for development, and it sets a new low benchmark for borrowing costs for a greenfield petrochemical project in Oman.
Aromatics Oman LLC is expected to break ground on the project by the end of the year.
Aromatics Oman LLC was established in July 2005 by Oman Oil Company, which owns 60% of the company’s share capital. Oman Refinery Company owns a 20% share, and LG International Corporation owns the remaining 20% shareholding. Both OOC and ORC are wholly owned by the government of Oman.
The company will construct and operate the this major petrochemicals facility in the Sohar Industrial Area which will utilise products from the soon to be completed Sohar Refinery and will produce over 1 million tonnes per annum of paraxylene and benzene, known as ‘aromatics’. Paraxylene is used predominantly in the production of polyester, while benzene is used in a wide variety of products from plastics to pharmaceuticals.
Financing for the project will come from the shareholders who will contribute 30% of the project cost, with the balance from a combination of commercial bank financing and a direct loann Overseas Investment Loan from The Export-Import Bank of Korea (‘KEXIM’).
The Commercial bank financing has been secured from fourteen leading institutions from around the world as follows: Societe Generale, Natexis, Royal Bank of Scotland, Korea Development Bank, Bank of Tokyo Mitsubishi, Mizuho, Calyon, Bank Muscat, Arab Petroleum Investments Corporation, Arab Bank (in association with Oman Arab Bank), Arab Banking Corporation, Gulf International Bank, HSBC and Standard Chartered.
© 2005 Al Bawaba (www.albawaba.com)
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