SABIC & Mobil Announce Mandate for Largest-Ever Petrochemical Financing.
The facility is scheduled for financial close in October 1997 with general syndication to commence thereafter. With a tenor of 10.5 years, it represents the largest ever financing for a petrochemical complex and the largest bank facility for a non-sovereign financing within the Arabian Gulf.
The group of arrangers represent local, regional and international banks with considerable experience in financing transactions within the region and the petrochemical industry. Pricing of the facility reflects its corporate-like structure and access to the existing Yanbu petrochemical complex cash flow.
The arranging banks are:
Arab National Bank (Regional Documentation Bank)
ANZ Investment Bank
Bank of America (Documentation and Technical Bank/Co-ordinating Bank)
Barclays Bank PLC
Chase Manhattan Bank
Gulf International Bank (Regional Bookrunner)
J.P. Morgan Securities Ltd. (Global Bookrunner)
Saudi American Bank (Security Agent)
The Saudi British Bank
The Sumitomo Bank, Limited
Yanpet began production of ethylene and polyethylenes from the complex in Yanbu in 1986. As a result of the expansion project, production will be increased significantly and polypropylene production will also be added, making the Yanpet complex one of the world's largest and lowest cost producers of olefins.
SABIC was established in 1976 as a world-scale producer and marketer of petrochemicals, industrial gases, steel and fertilizer. Its total 1996 revenues were $5.6 billion. Mobil, the oil, gas and petrochemical company, has been active in Saudi Arabia for over 60 years and had revenues of $81.5 billion in 1996.
CONTACT: Bank of America
Susan Grice, 44-171-634-4770 (London)
Jim Mitchell, 415/622-4314 (San Francisco)
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|Date:||Jul 30, 1997|
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