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Farabi Yanbu Petrochemicals Company completes the signing of a 2.15 billion riyals Islamic financing agreementfor its New Petrochemicals Complex

Farabi Yanbu Petrochemicals Company (FYPC), a subsidiary of Farabi Petrochemicals Company (FPC), has signed a 2.15bn riyals Islamic financing agreement for the construction of a new petrochemicals complex on the Red Sea coast in Yanbu, Saudi Arabia. This follows the signing of a 1.2bn riyals loan agreement between FYPC andthe Saudi Industrial Development Fund in October 2018.

The complex is designed to manufacture 650,000 metric tonnes per annum of petrochemical products. Between 60-70% of this output will comprise the production of linear alkyl benzene (LAB) and normal paraffins, with the remaining 30-40% of products produced being derivative products. The plant is being constructed by Larsen & Toubro, with Thyssenkrup Industrial Solutions as the project management consultant. Production is scheduled to commence in the first quarter of 2020. The marketing of the FYPC products will be undertaken by Farabi Marketing Company – a marketing arm of the parent company, FPC.

This successful Islamic financing will enable FPC to realize its vision of becoming the world leader in LAB production by 2020, building on the success of its existing LAB and paraffins plants at Jubail, Saudi Arabia. FYPC will utilize the extensive know-how and experience of its parent company, FPC, gained from its world-class facility in Jubail. The FYPC project will benefit from the technical expertise, availability of feedstock, utilities, complete industrial infrastructure, global demand for the products, well-developed sales and marketing network of FPC in several continents world-wide

The major commercial lenders are Banque Saudi Fransi, Samba Financial Group, The National Commercial Bank and The Saudi British Bank.

HSBC Saudi Arabia performed the role of financial advisor. Linklaters LLP and Zamakhchary & Co. acted as legal advisors to FPC & FYPC. White & Case LLP, together with its associated firm in Riyadh, The Law Firm of AlSalloum and AlToaimi, assumed the role of legal adviser to the major commercial lenders

 

06 November 2018

FaLang translation system by Faboba

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