Arab Banking Corporation (B.S.C.) (ABC) informed that Al Kayan Petrochemical Company (Kayan) awarded a financial advisory mandate to a bank consortium comprising Arab Banking Corporation (B.S.C.) (ABC), BNP Paribas and SAMBA Financial Group (SAMBA).
This appointment marks the commencement of the second 'project financing' phase of the project originally sponsored and developed by Project Management Development Company (PMD), Saudi Arabia and follows the successful completion of the first phase 'strategic and financial advisory' assignment undertaken by ABC.
In October 2005, Kayan, a joint stock company was incorporated in the Kingdom of Saudi Arabia, with an equity of SAR 3,200 million (US$853 million).
Kayan is developing a world scale petrochemical complex in Al Jubail, Kingdom of Saudi Arabia, which will produce 1.35 mtpa of ethylene and 2.6 mtpa of finished products (including polyethylene, polypropylene, ethylene glycol, polycarbonates and amines), from feedstock of ethane and mixed butanes allocated by Saudi Aramco for the project in late 2003.
It will be the largest single private sector petrochemical project in the Kingdom and the first plant in the Middle East producing polycarbonates, a fast growing market.
It is anticipated that major EPC contracts will be awarded shortly, and that the petrochemicals complex will start production in 2009.
ABC's strategy of diversified growth led to the development of its widespread network (the ABC Group) of branches, representative offices, subsidiaries and affiliates in over thirty countries around the world, including most principal international financial centres. ABC's branch offices are situated in Grand Cayman, New York and Tunis.
Samba Financial Group was formed pursuant to Royal Degree dated 26/3/1400 H. (February 12, 1980) to take over the then existing branches of Citibank, N.A. in Riyadh and Jeddah.
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