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: August 26, 2014
INTERNATIONAL. Is it time to stop thinking about stabilizing Syria and Iraq and start thinking of a new dynamic outside of the artificial states that no longer function? To do this, we need to go back to Lebanon, the first state that disintegrated and the first place where clans took control of their own destiny.
date:Posted: August 25, 2014
INTERNATIONAL. Commodities have been generally flat on the week as a rise in industrial metals was offset by losses across other sectors such as metals and grains.
date:Posted: August 25, 2014
UAE. With its oil wealth, population growth and strong demand for industrial and consumer goods, the MENA region is an attractive market. There are, however, potential pitfalls in doing business, particularly when it comes to appointing local agents to distribute products in the region.
SAUDI ARABIA. Strong demand fundamentals combined with increased public and private sector spending pushed up the average sales price; Momentum expected to continue as Riyadh attracts and promotes investment in industrial and supporting logistics facilities.
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