SIPCHEM OBTAINES A SAR 704M LONG TERM FINANCING BY PIF

Saudi International Petrochemical Co announces the signing of Long Term Financing agreement with Public Investment Fund as following:
1.loan was signed on 10-06-2013
2.Loan amount of SAR 704,000,000
3.Loan period duration from 10-06-2013 to 30-06-2027.
4.The purpose of the loan Project financing of a greenfield EVA/LDPE plant
5.Loan guarantee : By Order Notes.
6.Further information: The plant will produce Ethylene Vinyl Acetate EVA and Low Density Poly Ethylene LDPE with an annual production capacity of 200 thousand metric tons in its industrial complex in Jubail Industrial City.

Plant start-up is scheduled in the third quarter of 2013. The financing agreements have been signed by Mr. Abdulrahman M. Al-Mufedhi, Director General of the Public Investment Fund and Eng. Abdullah S. Al-Saadoon, Sipchem President Operations.

EVA is used as a feedstock in the production of heat soluble adhesives, resin products and high-quality sports bandages; while LDPE is used as a feedstock in the production of various types of containers, bottles and medical detergents.

 IPC is jointly owned by Sipchem 75% and Hanwha Chemical Corporation 25%. Sipchem had previously announced on November 19, 2011 that its affiliate, International Polymers Company IPC, has signed with Saudi Industrial Development Fund SIDF a SR 600 million US$ 160 million loan facility Agreement, and on 02 June, 2012 has signed a Shariah.