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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) 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.

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)

Riyad Bank

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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Publication:Business Wire
Date:Jul 30, 1997
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