The Saudi Arabian Fertilizer Co. (SAFCO), an affiliate of Saudi Basic Industries Corporation (SABIC) has entered into a loan agreement with a consortium of local and Gulf banks to the tune Saudi Riyals 1.24 billion (US$ 330 million) for the construction of its forth fertilizer plant in Al- Jubail Industrial City.
SABIC’s Vice Chairman and CEO; and Chairman and Managing Director of SAFCO Mohamed Al-Mady said:
The loan reflects the confidence of the local and regional financial institutions in SABIC’s strategies, trends and projects. Al-Mady lauded the continuous support provided by various financial institutions to SABIC and said such a constructive cooperation bode well for the company.
The loan agreement was concluded by and between; Abullah bin Sulaiman Al-Humyyed, President of SAFCO and IBN AL-BAYTAR (National Chemical Fertilizer Company, another SABIC affiliate); and Riyadh Bank, representing the consortium of banks. The Saudi American Bank (SAMBA) was SAFCO’s financial advisor.
SAFCO is a pioneer in the fertilizer industry in Saudi Arabia. The initial production of the new plant is expected to go on stream during Q1 2006, with an annual capacity of 1.1 million m/t of ammonia, and 1.1 million m/t of urea. With the additional plant SAFCO’s total annual capacity is expected to reach five million m/t in near future.
