Aramco, Dow venture said to seek US$12.4 billion in funds
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Thu May 31, 2012 10:14 am

SAUDI ARABIA. Saudi Arabian Oil Co. and Dow Chemical Co. (DOW) sent requests to banks for US $12.4 billion in financing for Sadara Chemical Co., their US$20 billion joint venture, two bankers with knowledge of the situation said.

The Saudi company, also known as Saudi Aramco, and Dow Chemical plan to raise US$2.66 billion in bank loans, US$1.4 billion from the sale of Islamic bonds, US$6.5 billion from export credit agency financing, US$1.3 billion from Saudi’s Public Investment Fund, and US$530 million from the Saudi Industrial Development Fund, the people said, declining to be identified because the information is private. The requests were sent out this week, they said.

The banks have until July 23 to express interest, and the financing may be completed by December, they said. Saudi Aramco and Dow Chemical have hired Royal Bank of Scotland Group Plc (RBS) and Riyad Bank (RIBL) as financial advisers, they said.

Nicole Hayde, a spokeswoman for RBS in Dubai, declined to comment when contacted by BLoomberg. Riyad Bank’s public relations department didn’t return calls from Bloomberg. Saudi Aramco declined to comment. Rebecca Bentley, a spokeswoman for Midland, Michigan-based Dow, said she couldn’t immediately comment.

Sadara may begin production in 2015, with 40%s of its output being exported to Asia and as much as 35 percent to the Middle East and Africa, Dow Chemical Chief Executive Officer Andrew Liveris said May 3.



date:Posted: November 30, 2015
INTERNATIONAL. The aggressive 5% sell-off in the Shanghai Composite Index on Friday presented risks to the market and weighed on both European and US futures as last week drew to a conclusion.
date:Posted: November 30, 2015
UAE. S&P Survey - conducted by Gallup, GFLEC, and World Bank - finds major deficiencies globally in understanding of savings and borrowing; GCC has large financial literacy gaps across income and education.
date:Posted: November 30, 2015
UAE. Union Bancaire Privée: 2016 will be about the search for modest growth, while Fed fund rates will be hiked for the first time since 2007; While the US is further along into its recovery, Europe and Japan are only in the early stages.
Monogram Ring