The SABIC affiliate, National Industrial Gases Company (GAS), has 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.
