SABIC AFFILIATE GAS SIGNS SR 1.2 BILLION ISLAMIC LOAN WITH BANQUE SAUDI FRANSI “BSF” AND APPOINTS BSF AS FINANCIAL ADVISOR AND LEAD ARRANGER FOR ITS
The SABIC affiliate, National Industrial Gases Company (GAS), today signed a SR 1.2 billion Islamic loan agreement with Banque Saudi Fransi (BSF). As per the agreement BSF will be 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 Mr. Ibrahim Al-Shuweir, SABIC’s VP for Corporate Control and Chairman of the Board of Directors for GAS.
Mr. Mohamed Al-Mady, SABIC Vice Chairman and CEO, said: “GAS’ new expansion projects will increase the total annual capacity of its complexes in Jubail and Yanbu to 7 million metric tons. Production is scheduled to begin in the first quarter of 2008 to meet the oxygen requirements of SABIC plants and other industrial business.”
GAS is a symbol of cooperation between SABIC and a group of national industrial gas companies, which own a 30% stake. SABIC owns the remaining 70%.
SABIC prioritises the use of Islamic financing as part of its strategy to diversify its sources of funding.
Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East, ranked by market capitalization (more than US$ 150 billion), and one of the world’s 10 largest petrochemicals manufacturers. The company is among the world’s market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.
SABIC’s profit rose to a record SR 19.2 billion (US$ 5.1 billion) in 2005, a 35% increase on 2004 and the company’s highest profit since inception. Sales revenues for 2005 totaled SR 78.3 billion (US$ 20.8 billion), making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 17,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia – in Al-Jubail and in Yanbu – comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell and Mitsubishi Chemicals. SABIC’s overall production capacity has increased from 35.4 million metric tons in 2001 to 46.7 million metric tons of production in 2005.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
SABIC Europe, headquartered in Sittard, the Netherlands, employs nearly 2,450 people and operates two petrochemical production sites in Geleen, the Netherlands and Gelsenkirchen in Germany for the production of polypropylenes, polyethylenes and liquid hydrocarbons. These are marketed by its European network of sales offices and logistical hubs. In 2005, SABIC Europe produced 2.5 million metric tons of polyolefins and 3.1 million metric tons of basic chemicals, mainly for the European market.
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