Riyadh – Mubasher: Advanced Polyolefins Industry Company (APOC), a subsidiary of Advanced Petrochemical Company, has signed a SAR 3 billion loan agreement with the Saudi Industrial Development Fund (SIDF).

Through the facility, the company seeks to finance the construction of propane dehydrogenation (PDH) and polypropylene (PP) plants, according to a press release on Wednesday.

The plants have a nameplate capacity of 843,000 tonnes per annum for propylene and 800,000 tonnes per annum for polypropylene in Jubail Industrial City II. 

The loan is repayable in 16 unequal semi-annual installments over a period of eight years.

The guarantees offered by the company for the financing include order notes and a mortgage on all fixed assets of APOC to SIDF.

Meanwhile, Advanced Petrochemical will provide a financial guarantee covering 100% of the SIDF’s loan.