Qatar Fertilizer Co. (Qafco) has signed a $400-million loan with a group of international banks to help fund a fourth production complex, one of the loan's six lead arrangers said Tuesday, July 3.
The loan, signed in London Monday, will help finance Qafco-4, entailing the construction of a 2,000 tons a day ammonia unit and 3,200 tons a day urea unit at an estimated cost of $1.1 billion, Gulf International Bank (GIB) said.
On completion, Qafco will become the biggest urea production site in the world, the Bahrain-based bank said in a statement.
Qafco has a current daily capacity of 4,000 tons of ammonia and 4,800 tons of urea, which is used mainly as an agricultural fertilizer.
Lead arranged by Arab Banking Corp., Arab Petroleum Investments Corp., Barclays Capital, GIB, HSBC Investment Bank and Qatar National Bank, the eight-and-a-half year loan is fixed at a rate of 0.75 percent a year over the London Interbank Offered Rate (Libor).
Qafco is a joint venture between government-owned Qatar Petroleum, with a 75 percent stake, and Norway's Norsk Hydro, which has a 25 percent share. ― (AFP, Manama)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)