Saudi Kayan reschedules $1.2 bln loan with NCB, secures $150 mln facility

Saudi Kayan Petrochemical Co. signed on Monday an agreement to reschedule a $1.2 billion (SAR 4.5 billion) loan with the National Commercial Bank (NCB).

The original agreement was signed in August 2010 and had a seven-year duration, meaning that it was scheduled to be paid on August 16, 2017. The amount was used to finance projects costs, Saudi Kayan said in a statement to Tadawul.

The company also obtained a $150 million (SAR 562.5 million) facility from NCB to finance project expansions that will allow it to increase production of Ethylene and Pure Ethylene Oxide by at least 93,000 tons and 61,000 per year, respectively, as agreed upon with the Saudi Ministry of Energy.

The facility agreement has a five-year duration, after which it should be repaid in full on August 16, 2022.

Both agreements are Islamic Murabaha facilities and guaranteed by Saudi Basic Industries Corporation (SABIC).

Saudi Kayan has a capital of SAR 15 billion and is an affiliate of SABIC. Kayan’s petrochemical complex, which is located in Jubail Industrial City, is one of the largest in the world.