Saudi Arabia's Advanced Polyolefin Industries, a subsidiary of private advanced petrochemical companies, has signed a $1.6 billion facility with a consortium of financial institutions for the construction of three plants in Jubail Industrial City 2.

The projects include a propane dehydrogenation plant, a polypropylene plant and an isopropanol plant, the company said in a filing with the Saudi stock exchange. The company has signed a Shariah-compliant Islamic facility agreement with a consortium of financial institutions that includes the following banks: Alima Bank, Al-Rajhi Bank and Investment Company, Arab State Bank, Arab Oil Investment Company, Albilad Bank , Saudi French Bank, Riyadh Bank, Saudi British Bank, Saudi National Bank.

The facilities include a 4.7 billion riyal infrastructure, a 43.8 billion riyal backup facility and a 600 million riyal bridge murabaha facility. From May 31, 2025 to November 20, 2035, the infrastructure and backup facilities will be repaid in 22 semi-annual instalments. The transition and VAT murabaha facility will be paid no later than May 31, 2026.

Advanced Petrochemical also entered into a debt service commitment of up to $250 million and pledged Apoc's shareholder shares. The Islamic Facility Agreement will be used to finance the construction of plants with the following nameplate capacities: PDH: 843,000 tonnes per year (t/y) propylene, PP: 800,000 tonnes/year polypropylene, IPA: 70,000 t/y Isopropanol Headquarters Synergy Consulting in India and BSF in the UK provided financial advisory services to Advanced Petrochemical's facilities.

Advanced Global Investment Company (AGIC), a subsidiary of Advanced Petrochemical Company, said in March that it had received approval from the Saudi Energy Ministry to allocate the required amount of feedstock for its upcoming petrochemical production complex at Jubail Industrial City 2. The complex has a budget of $1.88 billion. Keywords: engineering news, overseas news

In April 2021, EPC works for the complex were awarded to Italy's Tecnimont and South Korea's Samsung Engineering, while the civil engineering deal was awarded to local Al-Rushaid Construction.Editor/XingWentao