Riyadh – Mubasher: Sadara Chemical Company (Sadara), the owner of Sadara Basic Services Company, signed a guarantee for 50% of the payment obligations of Saudi Hydrogen Peroxide Company (SHPCo).

The guarantee is in relation to a SAR 1.13 billion loan to be issued to SHPCo by a Saudi commercial bank, in addition to a cross currency swap entered into in connection with such loan (such percentage being in proportion to Sadara's ownership in SHPCo). 

The hydrogen peroxide will be supplied to the chemicals project of Sadara located at Jubail Industrial City II in the eastern province of Saudi Arabia, according to a bourse statement.

SHPCo is a special purpose joint venture (JV) company established by Sadara and Solvay Chemicals and Plastics Holding B.V. for the purposes of owning and operating a hydrogen peroxide production plant.