JEDDAH – Saudi Arabian Oil Co. (Saudi Aramco) and its partner Dow Chemical Co. plan to close financing this year on their $20 billion Sadara chemicals joint venture, Aramco treasurer Jamal Al Rammah said Tuesday in Dubai at MEED project finance conference. Aramco is weighing options including loans, sukuk, and public funds to pay for its large joint venture projects, he said. Sadara Chemical Co., the joint venture, will borrow $5 billion in loans from the US Export-Import Bank, the Washington-based institution said in September, and future Aramco ventures will also seek sukuk funding, Al Rammah said. The Kingdom plans to build refineries and chemical plants to help diversify the economy. The Sadara Chemical venture planned for the Saudi port of Jubail is one of Aramco's biggest projects, along with a refinery and chemical plant built with France's Total SA (FP) at the same location, Al Rammah said. The project with Total raised $8.5 billion in debt, including Saudi Arabia's first sukuk for a new facility, he said. Saudi Arabia needs to develop a more active secondary market for sukuk, he said. The European financial crisis creates opportunities for an expansion of the sukuk market by regional lenders, and export credit agencies will also play a bigger role in funding Middle Eastern projects, he said. — SG/Agencies
