Main project financing completed for Sadara

The Dow Chemical Company has signed the main financing for the Sadara project. Sadara Chemical Company (Sadara), Dow’s joint venture with Saudi Arabian Oil Company (Saudi Aramco), entered into definitive agreements with certain export credit agencies, commercial banks and the Public Investment Fund of the Kingdom of Saudi Arabia for approximately $10.5 billion of additional project financing. The financing supplements the $2 billion raised through a Sukuk Islamic bond issuance in April, 2013, bringing the total Sadara project financing raised to approximately $12.5 billion, which will be used to fund the construction and start-up of the joint venture.

Sadara is a cornerstone of Dow’s growth strategy. The formation of this joint venture is a major step forward in Dow’s strategy to drive long-term profitable growth in its downstream, innovation-driven businesses and in fast-growing regions such as Asia Pacific, the Middle East and Africa, and Eastern Europe. Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City II. The complex will comprise 26 manufacturing units and possess flexible cracking capabilities with production capacity of over 3 million metric tonnes of high-value performance plastics and specialty chemical products. The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016.  www.sadara.com