Saudi Basic Industries Corporation (SABIC) announced today the signing in Beijing of financing agreements by its affiliate SINOPEC SABIC Tianjin Petrochemical Co. Ltd, totalling RMB 18.26 billion (US $2.68 billion), including RMB 12.26 billion (US $1.8 billion) long-term financing, plus an additional RMB 6 billion (US$ 880 million) in working capital facilities to finance its petrochemical complex in Tianjin, China, that is owned jointly by SABIC and SINOPEC. The two companies formed SINOPEC SABIC Tianjin Petrochemical Co. Ltd. (SSTPC) in November, 2009, as a 50/50 joint venture to build and operate the new petrochemical complex.
Mr. Khaled Al-Mana, SABIC Executive Vice President, Polymers, and Chairman of SSTPC, signed the financing agreements on behalf of SSTPC. The financial package included financing by leading Chinese banks and financial institutions including China Construction Bank acting as the agent, Industrial and Commercial Bank of China (served also as financial advisor), Bank of China, China Development Bank, the Agricultural Bank of China, and Sinopec Finance Company.
Mr. Mutlaq Al-Morished, SABIC Executive Vice President, Corporate Finance noted, “This loan facility arranged through the Chinese banks and financial institutions, represents further diversification of our financing capacity and demonstrates the trust and confidence these institutions have in SABIC.”
Pre-production operations of the new 3.2 million-ton petrochemical complex, including a million-ton ethylene cracker and eight additional downstream units, has also commenced.