JEDDAH – Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical, launched an Islamic bond sale that could raise at least $1.4 billion to finance a large petrochemical complex. The $19.3 billion facility, located at Jubail Industrial City, will be the world's largest chemical complex ever built in a single phase. Sadara may increase the size of the planned sukuk to $2.5 billion depending on market demand, it said in a prospectus for the sale, adding if the company raises more than $1.4 billion other sources of financing will be adjusted accordingly. Pricing of the sukuk, which is only available to Saudi investors, will be determined once roadshows have taken place. The sukuk has a 16-year lifespan, the company said. The sukuk forms part of a $12.5 billion debt package currently being raised to fund the construction of the project, which will produce more than 3 million tons of petrochemicals each year when completed in 2016. Of the total, $4.975 billion has been provided by the US Export-Import Bank - the largest direct loan ever given by the agency to a single project. Deutsche Bank, Riyad Bank, Alinma Bank and Bank Al Bilad have been mandated to arrange the sukuk, the statement said. Once sold, it will be only the second project finance sukuk ever sold in Saudi Arabia - the first was the SR3.75 billion ($1 billion) issue in October 2011 from Saudi Aramco Total Refining and Petrochemical Co. (Satorp), a joint venture between Aramco and France's Total. Once complete, the complex is expected to be one of the world's largest integrated chemical facilities, and the largest ever built in a single phase. First production units are expected to come on line in the second half of 2015, with all production units coming on line in 2016. Earlier, Intertec has won the contract for the environmental protection cabinets and shelters that will protect the field-based process analyzers at the planned Sadara petrochemical complex. The outdoor cabinets will be constructed from high-performance grades of GRP (glass reinforced polyester). This will provide proven long-term protection against the region's extreme climatic conditions – which include very high temperatures and UV levels for example – as well as the corrosion threats posed by the process media and salty sea air. The Sadara complex will have 26 world scale manufacturing plants. – SG/Reuters
