DAMMAM, Saudi Arabia (Zawya Dow Jones)--Dow Chemical Co. (DOW)
has asked the Saudi government's Public Investment Fund, or PIF,
for a $2 billion bridge loan on its $20 billion joint-venture
petrochemical project with Saudi Arabian Oil Co., Al Arabiya
television reports Sunday, citing the kingdom's finance
minister.
Ibrahim Al Assaf told the Dubai-based channel that Dow Chemical
had asked the PIF, which is part of the finance ministry, for the
loan until it borrows from the markets to finance the project, one
of the world's largest chemicals plants to be built in the oil-rich
kingdom's Eastern Province on the Persian Gulf coast.
Aramco Chief Executive Officer Khalid Al Falih told a press
conference Saturday that the joint-venture partners were looking
into various options for the project's debt portion, including
accessing export credit agencies, the PIF, as well as the
commercial market, and bond and sukuk, or Islamic bond issues.
Construction of the 26 plants that will make up the chemical
complex--known as Sadara Chemical Co.--is scheduled to begin
immediately, with first output due to come on line in the second
half of 2015 and full operation scheduled for the following
year.
Sadara will produce polyeurethanes, propylene oxide, propylene
glycol, elastomers, linear low-density polyethylene, low density
polyethylene, glycol ethers and amines.
-By Summer Said, Dow Jones Newswires; +966-546-842373;
summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Co.