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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. |
