SABIC Appoints Samba As Financial Advisor For Saudi Kayan Petrochemical Company's Public Subscription Of Shares And Signed The Agreement With The Lead Arranger
The Saudi Basic Industries Corporation (SABIC) entered into agreement with, BNP Paribas, Samba Financial Group, and Arab Banking Corporation (ABC), as Lead Arranger of the Financing Loan amounting to USD 4.8 billion to Saudi Kayan Company, an affiliate to SABIC, currently under construction, plans to construct a world scale giant petrochemical complex in Al-Jubail, Kingdom of Saudi Arabia, 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 an agreement with Samba appointing it as financial advisor and IPO Manager for the Saudi Kayan Petrochemical Company, which intends to offer 45% of its share capital to public subscription after approval of the competent authorities, anticipated within the fourth quarter 2006.
The Agreement was signed at SABIC Headquarter in Riyadh, by Mr. Mutlaq Al-Morished, Vice President, Corporate Finance, for SABIC, and attended by His Excellency Engineer Mohamed Al-Madi, SABIC's Vice Chairman & CEO, and His Excellency Mr. Eisa Al-Eisa, Samba's Managing Director & CEO.
His Excellency Engineer Al-Madi said: "The new Company's capital amounts to SR 12 billion. SABIC owns 35% of this capital while Kayan 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".