Texas-based petrochemicals maker, Huntsman Corp and Saudi-based global industrial and investment conglomerate, Al-Zamil Group have raised $195 million through Saudi Hollandi Bank's Islamic loan to finance the Arabian Amines Co project, a petrochemical plant in the Kingdom. With a view to strengthen the petrochem sector in Saudi Arabia, the Arabian Amines Company aims to be one of the leading derivatives petrochemicals players in the region by being innovative and setting the standards for the market. A Saudi Hollandi Bank official said the deal includes both Murabaha and Ijara tranches. The funds will be used to fund $289 million Arabian Amines Co project having a capacity of 27,215 tpa ethyleneamine plant in Jubail Industrial City on the Kingdom's eastern coast. Saudi Hollandi Bank acted as the sole lead arranger and underwriter for the transaction. Allen & Overy acted as legal advisors for Saudi Hollandi Bank whereas Clifford Chance acted as sponsors' legal advisor. Commenting on the conclusion of this landmark transaction, Sattam Al-Zamil, the Zamil Group general manager for Finance, said “we are pleased to achieve Islamic financing for this transaction and are grateful to Saudi Hollandi Bank and other parties who made it happen.” Ibrahim I. Behairi, CEO of Arabian Amines Company, said “this transaction is strategically important for further development of petrochemical sector in the Kingdom.” Ed Mendoza, head of Structured Finance & Syndications at Saudi Hollandi Bank, said “we are delighted to arrange and underwrite this financing both for Huntsman and Al-Zamil Group, a key bank client. We are seeing a growing trend in the Middle East markets for completely Shariah-compliant project financings (rather than merely taking Islamic tranches to conventional debt financings), as global players are keen to penetrate the GCC's liquidity by adapting to market demands in the region.” __
