Farabi Yanbu Petrochemicals Company’s SAR2.15bn riyals Islamic financing

Farabi Yanbu Petrochemicals Company (FYPC), a subsidiary of Farabi Petrochemicals Company (FPC), has signed a 2.15bn riyals Islamic financing agreement for the construction of a new petrochemicals complex on the Red Sea coast in Yanbu, Saudi Arabia.

This follows the signing of a 1.2bn riyals loan agreement between FYPC and the Saudi Industrial Development Fund in October 2018.

The complex is designed to manufacture 650,000 metric tonnes per annum of petrochemical products. Between 60-70% of this output will comprise the production of linear alkyl benzene (LAB) and normal paraffins, with the remaining 30-40% of products produced being derivative products.

Production is scheduled to commence in the first quarter of 2020.

The major commercial lenders are Banque Saudi Fransi, Samba Financial Group, The National Commercial Bank and The Saudi British Bank.

Linklaters LLP and Zamakhchary & Co. acted as legal advisors to FPC & FYPC with a team led by Projects partner Sarosh Mewawalla (picture) and managing associate Ashley Halewood.

Involved fees earner: Sarosh Mewawalla – Linklaters; Ashley Halewood – Linklaters;

Law Firms: Linklaters;

Clients: Farabi Petrochemicals Company (FPC); Farabi Yanbu Petrochemicals Company (FYPC);

Author: Michael Patrini.