Oct 11 - Saudi Aramco & Dow Chemical to IPO 30 Percent of Sadara Joint Venture

Source Press
Company Saudi Aramco 
Tags Financing, Chemicals Activities
Date October 10, 2011

(Arabian Oil & Gas) Saudi Aramco and Dow Chemical are to float 30% of the share of their US$20bn joint venture company “Sadara” into local markets within five years, the CEO of  Saudi Aramco has said.

“We are in talk with the capital market authority, and we expect the launching of the IPO to take place in 2016 as a proposed date,” Khalid al-Falih, president and CEO of Saudi Aramco told reporters on the sidelines of the signature ceremony of joint venture shareholders’ agreement for Sadara Chemical Company.

Al-Falih also said that the project will require a lot of debt and his company will use all source available to meet debt needs. This would include accessing export credit agencies, the Kingdom's Public Investment Fund, which is part of the finance ministry, as well as the commercial market, and bond and sukuk, or Islamic bond issues, he added.

The mega petrochemical project will include 26 processing units. Construction works is scheduled to begin immediately, with first output due to come on line in the second half of 2015 and full operation scheduled for the following year.

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