Advanced Polyolefins Industry Company (APOC) has signed various Shari’ah compliant Islamic facility agreements with a consortium of financial institutions to finance three chemical plants in Jubail Industrial City II in Saudi Arabia.
APOC is a subsidiary of Saudi-based Advanced Petrochemical Company. According to a filing to Saudi Stock Exchange, APOC noted that the financial agreements are worth $1.62bn (SAR 6.1bn) and include the development of the propane dehydrogenation (PDH) plant, the polypropylene (PP) plant, and the isopropanol (IPA) plant.
APOC signed agreements with 9 financial institutions
The filing noted that the Islamic facility agreements will be utilised to finance the construction of PDH, PP and IPA plants with a nameplate capacity to produce 843,000 tonnes per annum of propylene, 800,000 tonnes per annum polypropylene and 70,000 tons per annum of isopropanol, respectively.
Additionally, consortium members 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.
The communique also noted that base and standby facilities are repayable in 22 unequal semi-annual instalments starting from 31 May, 2025 until 30 November, 2035 while bridge and VAT Murabaha facilities will be payable no later than May 31, 2026.
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