Sahara International Petrochemical Company (Sipchem) announces that its subsidiary International Polymers Company (IPC) has signed a Murabaha facility agreement to refinance its exiting syndicated bank facility and PIF loan
| Element List | Explanation |
|---|---|
| Introduction | Sahara International Petrochemical Company (Sipchem) announces that its subsidiary International Polymers Company (IPC) has signed a SAR 700 million Murabaha Facility Agreement with the Riyad Bank to refinance the existing syndicated bank facility and PIF loan. |
| Date of Signing the Credit Facility Rescheduling | 2020-12-27 Corresponding to 1442-05-12 |
| Financier | Riyad Bank |
| Reasons for rescheduling | The new facility provides favorable terms and pricing. In addition, it to converts the existing project finance into a pure sharia structured facility. |
| Credit facility Amount and Rescheduled Amount | Original amount: Syndicated Facility SAR 704 Million & PIF SAR 704 Million.
Total outstanding amount to be refinanced SAR 750.81 Million. New Murabaha facility amount: SAR 700 Million. IPC will drawdown the full amount of the new facility and the difference between the amount to be refinanced and the new facility will be funded by the internal cash sources of the IPC. |
| Financing Duration, before and after Rescheduling | The maturity date of the existing syndicated bank facility is in 2026 and for PIF Loan is in 2027.
The maturity date of the new Murabaha financing is in 2027, with a grace period of one and a half years from the date of refinancing and with a 30% bullet payment due at the final maturity date. |
| Guarantees Provided for the Rescheduled Credit Facility | No corporate guarantees, Unsecured |
| Related Parties | None |
| Additional Information | With the execution of this Murabaha loan facility, Sipchem’s entire loan portfolio will be completely Sharia Compliant.
International Polymers Company is 75% owned by (Sipchem) and 25% owned by Hanwha Chemical Overseas Holdings Co. Ltd |
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