Saudi International Petrochemical Company (Sipchem) announced that its affiliate, International Polymers Company (IPC) signed on Monday a financing agreement of SR 704 million ($ 188 million) with Public Investment Fund (PIF). The loan is repayable over 14 years in 26 semiannual and equal installments commencing December 2014. The loan is payable until June 30, 2027 and secured until project completion by order notes. The purpose of this agreement is to support the project financing of a greenfield EVA/LDPE plant.
The plant will produce ethylene vinyl acetate (EVA) and low density poly ethylene (LDPE) with an annual production capacity of 200,000 tons at 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 Abdulrahman M. Al-Mufedhi, director general of the PIF, and 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 percent and Hanwha Chemical Corporation 25 percent.
Sipchem previously announced on Nov. 19, 2011 that its affiliate, International Polymers Company IPC, has signed with Saudi Industrial Development Fund (SIDF) a SR 600 million( $ 160 million) loan facility agreement, and on June 2, 2012 signed a Shariah compliant SR 1.4 billion ($ 375 million) loan (including bridge facilities) with four major Saudi banks.
IPC signs SR 704 m financing deal with PIF
