Advanced subsidiary signs SAR 3 bln loan agreement with SIDF

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Advanced Petrochemical Co. announced that its subsidiary, Advanced Polyolefins Industry Co. (APOC), signed a loan agreement worth SAR 3 billion with the Saudi Industrial Development Fund (SIDF), according to a bourse filing.

The loan agreement comes as a completion of the procedures and requirements stipulated by SIDF in the conditional loan approval, which was previously announced on Tadawul website Dec. 6, 2020.

The loan is repayable in 16 unequal semi-annual installments, starting from July 29, 2026, over a period of eight years, the company said.

The guarantees offered for the financing include order notes, mortgage on all fixed assets of APOC to SIDF, in addition to providing a financial guarantee by the company for the benefit of SIDF covering 100% of the SIDF’s loan.

The facility is aimed to finance the construction of propane dehydrogenation (PDH) and polypropylene (PP) plants with a nameplate capacity to manufacture 843,000 tons per annum propylene and 800,000 tons per annum PP in Jubail Industrial City II.

Any major developments related to the loan facility from SIDF will be announced as per related regulations and instructions. There are no related parties to the agreement.