Qatar Fertilizer Company (Qafco) signed on Tuesday a $400 million deal in London with six leading banks, moving a step closer to realizing its plans for a major expansion project, reported the Gulf Times newspaper.
The loan will part finance Qafco’s major expansion, Qafco-4, which involves setting up of a unit to produce 2,000 metric tons of ammonia a day and another unit to churn out 3,200 metric tons of urea a day, as well as associated support facilities.
The remainder of the money for the expansion would come from existing cash reserves and cash flow from operations, Qafco said.
The company has no long-term loan obligations.
On completion of Qafco-4, the company will be the single largest urea production unit in the world. The total project cost is estimated at $1.1 billion.
The eight-and-a-half-year term loan facility on a fully underwritten basis was arranged by a syndicate of Arab Banking Corporation, Arab Petroleum Investments Corporation, Barclays Capital, Gulf International Bank, HSBC Investment Bank, and Qatar National Bank, said the paper.
Qafco chose the group of six lead arrangers in May after receiving competitive bids from a number of regional and international banks – Albawaba.com