Saudi Arabia’s Advanced Polyolefins Industry Company (APOC), a subsidiary of Advanced Petrochemical Company, has signed several sharia-compliant islamic facility agreements with a consortium of financial institutions in order to finance the construction of plants at Jubail Industrial City II in the Kingdom.
Saudi Arabia-based Advanced Petrochemical Company is a chemical company specializing in the production of propylene through Propane dehydrogenation (PDH) -Catifin Technology.
The scope of work includes the development of a propane dehydrogenation plant with a total annual capacity of 843,000 tons in addition to a polypropylene (800,000 tons) and an isopropanol facility (70,000 tons), said Advanced Petrochemical Company in its filing to Saudi bourse Tadawul.
The consortium members taking part in the funding include Alinma Bank, Al Rajhi Banking and Investment Corporation, Arab National Bank, Arab Petroleum Investments Corporation, Bank Albilad, Banque Saudi Fransi, Riyad Bank, The Saudi British Bank, and The Saudi National Bank.
According to the statement, the total credit facilities consist of a $1.2 billion (SR4.7 billion) base facility, a $116 million (SR438 million) standby facility, $159 million (SR600 million) bridge Murabaha facility, and (SR356 million) VAT Murabaha facility.
The company noted that “the Base and Standby facilities are repayable in 22 unequal semi-annual installments starting from May 31, 2025, until November 30, 2035, while Bridge and VAT Murabaha facilities will be payable no later than May 31, 2026.”
“No related parties are involved in these Islamic Facility Agreements with a consortium of financing institutions,” the Saudi company added.