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.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: October 25, 2014
QATAR. Real GDP growth slowed to 7.3% in Q3 2014; However, the days of voracious Chinese demand driving up global commodity prices are probably over.
date:Posted: October 25, 2014
UAE. "When the system collapses, it is not the end of the world. It simply means that the major trading and financial powers in the world come together in a conference to write new rules of the game." ICA Conference in Dubai to address lessons from global economic crisis.
date:Posted: October 23, 2014
UAE. Deflationary reading of data endangers risky assets; Global cues drive GCC markets; Growth scare unsettles investors; Extreme bearishness on oil may be overdone.
UAE. "When the system collapses, it is not the end of the world. It simply means that the major trading and financial powers in the world come together in a conference to write new rules of the game." ICA Conference in Dubai to address lessons from global economic crisis.
dhgate