(Arabian oil and gas) -- Sahara Petrochemicals Company has signed a bridge loan agreement with Riyad Bank with the value up to $267m, te company said in a statement. ⌠This value will be used to finance the new projects that are currently under implementation, and future projects of the company, the company said in a statement.
The company said that it will repay this loan to Riyad Bank after completion of the company's capital increase/Rights Issue and from the future earnings of the Company with maximum period of 12 months.
The company has recently signed MoU with Chemanol for new Neopentyl glycol (NPG) project. According to the MoU, Chemanol will provide formaldehyde, the necessary feedstock for this product. SAHARA also signed a heads of agreements with Mitsubishi Gas Chemical and Sojitz Corporation from Japan to provide the necessary technology to develop and build the NPG plant, with a total cost of $125.3m.
Sahara Petrochemicals produces mainly polypropylene and polyethylene through its subsidiaries Al Waha and Saudi Ethylene and Polyethylene Company.