Petrochemicals firm Tasnee has obtained a two billion Saudi riyal (Dh1.9 billion) murabaha facility from Banque Saudi Fransi to refinance a sukuk expiring on May 21.
The facility is repayable in one instalment on the final maturity date at the end of the seven-year financing period, the company said in a statement to the Tadawul, where its shares are traded.
"The agreement includes a number of conditions precedent for drawing down the facility. Any material development will be announced as they occur,” the statement added.
Petrochemical companies are some of the largest listed firms on the Tadawul. Saudi Basic Industries Corporation is the largest listed company in the kingdom. Gulf companies specialising in chemicals have seen a flurry of activity due to a pivot by oil producing states towards greater downstream investment.
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Sabic signs agreement to develop methanol facility in Louisiana
Saudi Aramco completes acquisition of Dutch rubber company
Aramco-Sabic deal to spur consolidation in regional petchems
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On Tuesday, Sabic signed a preliminary agreement with South Louisiana Methanol to explore the possibility of developing a chemicals plant in the US, as the region's largest energy firm looks to profit from surging North American shale gas production.
The Louisiana-based company, which is majority owned by New Zealand’s Todd Corporation, will evaluate the potential for establishing a methanol plant with capacity of more a 1.8 million metric tonnes annually with Sabic.
The six-month partnership agreement between the two firms has provision for extension. Final investment decision will be taken after obtaining required approvals and licences following the completion of the study, Sabic said in a statement to Saudi Stock Exchange, where its shares are traded.
On Monday, Saudi Aramco, the world's largest oil producing company has completed the acquisition of a Dutch rubber joint venture in a transaction valued at €1.5 billion (Dh6.3bn).
The Saudi state company confirmed its purchase of the remaining 50 per cent stake in Netherlands-based Arlanxeo, acquiring the shares of its partner, German specialty chemicals company Lanxess. Aramco and its Dutch partner had formed a speciality chemicals joint venture in 2016.