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FINANCIAL NEWS
Saudi IPC secures Shariah compliant USD373m loan
03 Jun 2012
(MENAFN) International Polymers Company (IPC), a unit of Saudi International Petrochemical Company (Sipchem) won a USD373 million Islamic loan, Arabian Business reported.
Sipchem said that IPC signed the financing deal with local lenders, and the loan was repayable over 2.5 years in semi-annual installments.
IPC will use the cash to finance a plant currently being built in Jubail Industrial City, scheduled to start commercial production in the second half of 2013, Sipchem added.
The plant, which is being built by GS Engineering & Construction Corporation of Korea, will produce ethylene vinyl acetate (EVA) and low density poly ethylene (LDPE) with an annual production capacity of 200,000 metric tons.
EVA is used as a feedstock in the production of heat soluble adhesives, resin products and high-quality sports bandages; while LDPE is used as a feedstock in the production of various types of containers, bottles and medical detergents.
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