DIOL SIGNS A REFINANCING AGREEMENT AND GETS ADDITIONAL CREDIT FOR SAR 1.08BN

Saudi International Petrochemical "Sipchem" announces that International Diol Company (53.91% owned by Sipchem) has completed on Sunday 19 Jumada Al-Awal 1434 corresponding to March 31, 2013 the signing of new agreement for refinancing of existing loans with local commercial banks (loan in US dollars, signed on 30 October 2004 with amount of USD 47 million and outstanding balance is USD 9.5 million), Saudi Industrial Development Fund (loan in Saudi Riyals, signed on 5 July 2004 with amount of SR 400 million and outstanding balance is SR 300 million) and Public Investment Fund (loan in US dollars, signed on 1 January 2005 with amount of USD 115 million and outstanding balance is USD 38.5 million) that was procured for construction of the Butanediol plant and the related facilities of International Diol Company.

 In addition, International Diol Company has procured a supplemental funding to finance the company's planned debottlenecking project costs for construction and licensing based on an estimated cost of SR 393 million and also funds for the procurement of SR 91 million for general corporate purpose.

 The debottlenecking project is targeted for completion the end of 2014.

 Under this new agreement the financing will be through Islamic Sharia compliant facilities (Ijara/Lease facility) where there will be two tranches of financing.

The first tranche will include conversion of existing loans to long-term with repayments over ten years until 31 March 2023.

The second tranche will include 12 years funding for the planned expanded production capacity and will be repaid by March 2025.

The second tranche includes a grace period for first repayment until September 2015.

The Financing will be in Saudi Riyals with a competitive floating rate provided by Saudi Hollandi Bank and Saudi British Bank in total amount of one billion and eight million Saudi Riyals -SR 1,008 million- (five hundred and twenty four million Saudi Riyals -SR 524 million- for the first tranche and four hundred and eighty four million Saudi Riyals -SR 484 million- for the second tranche). International Diol Company provided the financiers with signed order notes as support. Sipchem and the other IDC Partners did not provide any loan facility guarantees.