Sumitomo Chemical sees finance approval for Rabigh II in early 2014

Updated 28 November 2013
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Sumitomo Chemical sees finance approval for Rabigh II in early 2014

TOKYO: Sumitomo Chemical Co. Ltd. expects to win project finance approval for the $7 billion expansion of a petrochemical project in Saudi Arabia in the first half of 2014 despite a series of problems at the existing complex, its president said.
“The Rabigh II plan is on track with an aim to start operation in 2016. The total investment plan of $7 billion is unchanged,” Sumitomo Chemical President Masakazu Tokura told a news conference.
PetroRabigh, which runs the complex on the Red Sea coast of Saudi Arabia, has annual output capacity of 18 million tons of refined products and 2.4 million tons of petrochemicals. PetroRabigh is a petrochemical joint venture between Japan’s Sumitomo Chemical And Saudi Aramco.
The parent companies agreed last year to go ahead with a $7 billion expansion of the Rabigh project in the Kingdom, but the financing details have not been disclosed.
“We are in negotiations with financial institutions on the project finance for Rabigh II. We expect to get an approval in the first half of next year,” Tokura said.
“Until the project finance is ready, parents companies will be providing money needed to proceed with the Rabigh II project,” he said.
Tokura said part of the construction for the second phase of the project had already begun.
Under Rabigh II, an existing ethane cracker will be expanded and a new aromatics complex will be built using around 3 million tons per year of naphtha to make higher-value petrochemical products.
The two parent companies will make a planned capital injection of about 100 billion yen ($986.19 million) each in PetroRabigh either next year or in 2015, Tokura said. There have been repeated problems with its first phase operation.
PetroRabigh said in October it had started to bring its ethane cracker back into operation after fixing a water leak. That followed a power outage which forced it to shut operations in September.
PetroRabigh shut its complex for about 20 days of maintenance at the start of this year after power and steam supplies were cut temporarily.


UAE’s Network International shrugs off Brexit to list shares in London

Updated 21 March 2019
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UAE’s Network International shrugs off Brexit to list shares in London

  • The planned share sale comes at an uncertain time in the UK
  • The company, which operates hospitals in the Middle East, was said to be also considering listing in the US or Singapore

DUBAI: Network International, the UAE payments processor, has committed to a London IPO next month in what would be the UK’s first big share sale of the year.
The company intends to have a free float of at least 25 percent and admission to the London Stock Exchange is expected to take place in April, Network International said in a regulatory filing on Thursday.
The planned share sale comes at an uncertain time in the UK where there is still no clarity around whether Britain will leave the EU or not at the end of the month.
VPS Healthcare, the Abu Dhabi-based hospital operator, is reconsidering plans to list in London due to uncertainty surrounding Brexit, Bloomberg reported on Thursday citing a person familiar with the matter.
The company, which operates hospitals in the Middle East, was said to be also considering listing in the US or Singapore.
Emirates NBD, Dubai’s biggest bank, owns 51 percent of Network International while Warburg Pincus and General Atlantic jointly own the rest.
The share sale will be a key test of investor demand for new listings in London after a subdued 2018 across most European markets.
“Volatility has continued in recent months, driven by the uncertainty around trade between the US and China, the wider geopolitical climate and the potential end of the current bull run,” said Peter Whelan, partner and UK IPO Lead at PwC in a recent report.
“We are seeing a healthy number of companies preparing for an IPO in 2019 despite the ongoing Brexit negotiations which have clearly impacted IPO activity on the London market.”
The payment processor reported earnings of $298 million last year according to its website, up from $262 million a year earlier. It does not disclose net income figures.
The company handles digital payments across the Middle East, which generate three quarters of its total earnings.
Last year it processed some $40 billion in payments for more than 65,000 merchants.
Its key markets in the region include the UAE and Jordan it says that Saudi Arabia offers “significant opportunities.” It also offers services in 40 African countries with Egypt, Nigeria and South Africa being its most important segments on the continent.