News from 2013-08-02 / KfW IPEX-Bank
German know-how for petrochemical complex in Saudi Arabia
- KfW IPEX-Bank finances German supplies for Sadara/Saudi Arabia
- World's largest petrochemical complex built in a single construction phase
KfW IPEX-Bank is contributing USD 200 million to the financing of one of the world's biggest petrochemical projects. The total investment volume for Sadara Chemical Company (Sadara), under construction in Jubail Industrical City II in the Eastern province of Saudi Arabia, will add up to approximately USD 20 billion. Sadara will be the world’s largest integrated petrochemical complex built in a single phase.
The main project financing agreements which have now been signed amount to approximately USD 10.5 billion. Together with the proceeds from the issue of a Sukuk (an Islamic bond) that had already been placed in April, the volume of debt financing adds up to approximately USD 12.5 billion. Not only is it the largest project financing in the Middle East, but probably also the largest carried out in 2013 the world over. Numerous international banks and export credit agencies are involved in the financing. KfW IPEX-Bank is the only German bank in the consortium and has taken on the role of Hermes structurer and agent for a volume of USD 425 million.
The share of supplies from Germany amounts to approximately USD 600-700 million. Included among the exporters are ThyssenKrupp Uhde, Josef Meissner, Alstom, MAN Diesel&Turbo, Siemens, John Zink KEU, and Coperion Werner&Pfleiderer as well as a number of medium-sized German enterprises. A significant share of supplies from other European countries will be provided from the UK, Spain, Italy and France.
Sadara is a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company. The chemical complex will be comprised of 26 world-scale manufacturing units and is scheduled to be begin coming online in the second half of 2015.