RIYADH, 9 February 2006 — Struggling Saudi petrochemical firm Alujain has secured a bank loan of over $400 million to finance the bulk of its first petrochemical plant, a company spokesman said.
The firm has been trying to raise funds for the $750 million project, which has been in the pipeline since the 1990s and includes construction contracts worth about $500 million.
Analysts said the loan deal should improve the performance of a company that has just returned to profitability. Investors celebrated the news by pushing the share price to a record high of SR524 ($139.7), up 4.17 percent on the day.
The firm signed the deal last week with a consortium of banks including Banque Saudi Fransi, Samba Financial Group and National Commercial Bank to underwrite over $400 million in commercial financing for a polypropylene complex.