SHB closes Islamic financing for Zamil & Huntsman petrochemical
project
Saudi Hollandi Bank today announced the signing of a US$195 million fully
Islamic financing for Arabian Amines Company – the new joint venture between
Al-Zamil Group and the global petrochemicals manufacturer Huntsman Corporation.
Saudi Hollandi Bank acted as the sole Lead Arranger and underwriter for the
transaction. The deal signifies growing trend for 100% Shariah-compliant project
financings in KSA.
The US$289 mln project comprises the design,
engineering, procurement, construction and financing of a 27,215 tpa
ethyleneamines plant and associated utilities in the Jubail Industrial City,
Saudi Arabia under Arabian Amines Company with both Huntsman SA Investment
Corporation (a subsidiary of Texas-based petrochemical company Huntsman
Corporation) and Saudi-based global industrial and investment conglomerate,
Zamil Group being the co-sponsors. The transaction consists of Murabaha and
Ijara tranches duly approved by the Shariah Board of Saudi Hollandi Bank.
Allen & Overy acted as legal advisors for Saudi Hollandi Bank whereas
Clifford Chance acted as sponsors’ legal advisor.
Commenting on
the conclusion of this landmark transaction, Mr. Sattam Al-Zamil, the Zamil
Group General Manager for Finance said: we are pleased to achieve Islamic
financing for this transaction and are grateful to Saudi Hollandi Bank and other
parties who made it happen. Mr. Ibrahim I. Behairi, CEO of Arabian Amines
Company commented "this transaction is strategically important for further
development of petrochemical sector in the Kingdom.”
Ed Mendoza,
Head of Structured Finance & Syndications at Saudi Hollandi Bank said “We
are delighted to arrange and underwrite this financing both for Huntsman and
Al-Zamil group, a key bank client. We are seeing a growing trend in the Middle
East markets for completely Shariah-compliant project financings (rather than
merely taking Islamic tranches to conventional debt financings), as global
players are keen to penetrate the GCC's liquidity by adapting to market demands
in the region."
The Arabian Amines Company aims to be one of the leading
derivatives petrochemicals players in the region by being innovative and setting
the standards for the market. Saudi Hollandi Bank is also seeking to be a
leader in offering Islamic financing solutions in the Kingdom which is one of
the fastest growing markets for Islamic banking & finance. This
innovative transaction allows both institutions to achieve their objectives,
said Mr. Kamal Mian, head of Islamic banking at Saudi Hollandi
Bank. |
