MOSCOW (MRC) -- Saudi Arabia's Sahara Petrochemical Co said its subsidiary Al Waha Petrochemicals Co had secured 1.96 billion riyals (USD522 million) from two local lenders to refinance an existing Islamic loan, said Reuters.
The previous loan amount wasn't given but the firm said the deal had been signed in 2006 with a number of commercial lenders and two government funds -- the Public Investment Fund and the Saudi Industrial Development Fund -- during the project phase.
The new loan had more favourable pricing and conditions than the existing deal. The facility was provided by Saudi British Bank and Banque Saudi Fransi and lasts until the end of 2026, Sahara said in the statement.
The company also signed a revolving Murabaha-structured facility worth 375 million riyals from Saudi British Bank for one year, which can be renewed yearly to support the working capital and the company's general operations, it said.
Murabaha is a cost-plus sale arrangement which is commonly used in many parts of the Islamic world.
As MRC wrote before, Sahara Petrochemical Co., the Saudi Arabia-based firm which last month announced plans to merge with Saudi International Petrochemical Co. (Sipchem) in the first half of this year, has earned net profit of SR578.7 million in 2013, registering a growth of 183% compared to net profit of SR204.4 million in 2012.
Sahara Petrochemical Co SJSC is a Saudi Arabia-based joint stock company engaged in the chemicals and petrochemicals industry sector. The Company, through its subsidiary, invests in industrial projects in the petrochemical and chemical fields, and owns and implements projects necessary to supply raw materials and utilities. The Company also focuses on the production of propylene, polypropylene, ethylene, polyethylene and other petrochemical and hydrocarbon based products. The Company’s industrial facilities are located at Jubail Industrial City, the Kingdom of Saudi Arabia. The Company has one subsidiary, Al Waha Petrochemicals Company (Al Waha). The Company also has investment in its associates, including Sahara and Maaden Petrochemicals Company, Saudi Acrylic Acid Company and Tasnee and Sahara Olefins Company.
MRC