In connection with the restructuring of Sadara Chemical Company’s senior debt financing, Saudi Aramco and The Dow Chemical Company (Dow) have agreed to guarantee up to an aggregate of US$3.7 billion of senior debt principal in proportion to their ownership interests in Sadara, which is significantly lower than the US$10 billion shareholder completion guarantees that were released when Sadara Chemical Company achieved project completion in November 2020. The terms of the restructuring also include beneficial terms like a principal repayment grace period until 15 June 2026 and an extension of the final maturity date from 2029 to 2038, in connection with all of the facilities.

Saudi Aramco, Dow (and/or their affiliates) and Sadara have also entered into agreements to provide additional feedstock by increasing the quantity of ethane and natural gasoline supplied by Saudi Aramco, and a gradual increase in Saudi Aramco’s rights to market, through the Saudi Basic Industries Corporation (SABIC), finished products produced by Sadara (subject to certain agreed terms) over the next five years.

It is worth noting that Sadara Chemical Company is a Related Party to Saudi Arabian Oil Company (Saudi Aramco), as it is an affiliate of Saudi Arabian Oil Company (Saudi Aramco) which owns 65% of the share capital of Sadara Chemical Company.