The Saudi Basic Industries Corporation entered yesterday into an agreement with BNP Paribas, Arab Banking Corporation (ABC) and SAMBA as financial advisors and lead arrangers for approximately US$ 4.8 billion loan for SAUDI KAYAN COMPANY, an affiliate of SABIC. The Saudi Kayan Company, currently under formation, plans to construct a world scale giant petrochemical complex in Al-Jubail, with an annual capacity exceeding 4 million metric tons of chemical products, some of which will be manufactured for the first time in the Kingdom of Saudi Arabia. SABIC also signed yesterday, an agreement with SAMBA Financial Group appointing it as financial advisor and IPO manager for the Saudi Kayan Petrochemical Company's public subscription. The new company will offer 45% of its capital for public subscription, most likely in 4Q2006, after obtaining necessary approvals. Mutlaq Al-Morished, Vice President, SABIC Corporate Finance signed both agreements at SABIC headquarters in Riyadh in the presence of Mohamed Al-Mady, SABIC Vice Chairman and CEO and Issa Ibn Mohammed Al-Issa, SAMBA Managing Director and CEO. Mohamed Al-Mady, said: "The new company's capital amounts to 12 billion Saudi Riyals. SABIC owns 35% of this capital while KAYAN Petrochemicals Company owns 20%. The remaining 45% shall be offered for public subscription following the approval of the competent authorities. “The offering of this percentage is consistent with the wise policy pursued by the Saudi government to pave the way for citizens to invest in industrial projects with long-term economic viability, especially since it comes after unprecedented demand experienced by the underwriting of SABIC's YANSAB affiliate". --MORE 16/07/2006 10:04 ت م
