SABIC & Mobil Announce Mandate for Largest-Ever Petrochemical Financing.LONDON--(BUSINESS WIRE)--July 30, 1997--Yanpet, the 50/50, joint petrochemical venture between Saudi Basic Industries Corporation (SABIC SABIC Saudi Basic Industries Corporation
SABIC Sample-Band Image Coding (currency counterfeit deterrence technique) ) and Mobil Corporation, has announced the mandate of an 11-bank group to underwrite and arrange a $2.32 billion facility to finance the expansion of the venture's current olefins and derivatives production capacity in Yanbu, Saudi Arabia Saudi Arabia (sä`dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. .
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 Arabian Gulf: see Persian 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 ANZ Australia and New Zealand
ANZ Australia and New Zealand Banking Group Limited
ANZ Air New Zealand (NZ national airline) Investment Bank
Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. (Documentation and Technical Bank/Co-ordinating Bank)
Barclays Bank PLC
Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City.
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)
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