ADVANCED PETROCHEMICAL COMPANY ANNOUNCES THE SIGNING OF VARIOUS ISLAMIC FACILITY AGREEMENTS BY ADVANCED POLYOLEFINS INDUSTRY COMPANY (A SUBSIDIARY COMPANY) WITH A CONSORTIUM OF FINANCIAL INSTITUTIONS
|Introduction||Advanced Petrochemical Company (“ADVANCED”) is pleased to announce to its shareholders that Advanced Polyolefins Industry Company, a Subsidiary company (“APOC”), has signed various Shari’ah Compliant Islamic Facility Agreements with a consortium of financial institutions to finance the construction of the following plants at Jubail Industrial City II, Kingdom of Saudi Arabia: |
1. Propane Dehydrogenation (“PDH”) Plant.
2. Polypropylene (“PP”) Plant.
3. Isopropanol (“IPA”) plant.
|Date of obtaining the funding||2022-07-05 Corresponding to 1443-12-06|
|Financing entity||The following financial institutions participated in the facilities: |
1. Alinma Bank.
2. Al Rajhi Banking and Investment Corporation.
3. Arab National Bank.
4. Arab Petroleum Investments Corporation.
5. Bank Albilad.
6. Banque Saudi Fransi.
7. Riyad Bank.
8. The Saudi British Bank.
9. The Saudi National Bank.
|Financing amount.||Total facilities of SAR 6.1 Billion, consisting of: |
1. Base facility of SAR 4.7 Billion.
2. Standby facility of SAR 438 Million.
3. Bridge Murabaha facility of SAR 600 Million.
4. VAT Murabaha facility of SAR 356 Million.
|Financing duration.||The Base and Standby facilities are repayable in 22 unequal semi-annual installments starting from May 31, 2025 until November 30, 2035 while Bridge and VAT Murabaha facilities will be payable no later than May 31, 2026.|
|Guarantees offered for the financing||Debt Service Undertaking provided by ADVANCED for an amount up to USD 250 Million and a pledge of the shareholders’ shares in APOC.|
|Financing objective||The above Islamic facility agreements will be utilized to finance the construction of PDH, PP and IPA plants with a nameplate capacity to produce 843,000 tons per annum Propylene, 800,000 tons per annum Polypropylene and 70,000 tons per annum Isopropanol.|
|Related Parties||No related parties are involved in these Islamic Facility Agreements with consortium of financing institutions.|
|Additional Information||Any major development related to above Islamic Facility Agreements will be announced as per related regulations and instructions.|
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.