Sunday, June 20, 2010

's SABIC gets $1bn credit from Alinma Bank

by Souhail Karam

Saudi based Alinma Bank said it would grant a $1 billion credit facility to Saudi Basic Industries Corp (SABIC), plugging a financing gap at the world's biggest petrochemicals group.

In a statement confirming a report by Al Hayat online news service on Tuesday, Alinma said: "The facility will fund some of SABIC's petrochemical projects as part of its strategic plans to enhance financing performance, boost competitiveness and help it achieve (its) expansion and growth strategy."

It did not disclose the terms of the facilities, saying only they complied with Islamic law.

Alinma was set up by royal decree in 2006. Government owned pension funds are its biggest shareholders with a 30 percent stake while Saudi citizens hold the remaining 70 percent.

SABIC Chief Executive Mohamed al Mady declined to comment while Chief Financial Officer Mutlaq al Morished could not immediately be reached for comment. Alinma said Morished signed the agreement on behalf of SABIC.

SABIC's financial arm SABIC Capital delayed last month a benchmark dollar bond issue due to jitters that hit global credit markets over fiscal problems in some euro zone countries.

It was not immediately clear if there was a link between the Alinma deal announced on Tuesday and the delay in SABIC Capital's delayed bond issue.

Ratings agency Moody's assigned the planned bond an A+ rating and said it understood it would be used to refinance or repay debt at SABIC Innovative Plastics Holding, the renamed GE Plastics.

SABIC Capital was established in 2008 to look after the financing and tax operations of SABIC's investments in Europe and the United States after the acquisition of DSM Petrochemicals and GE Plastics.

Between July 2006 and May 2008, state controlled SABIC raised 16 billion riyals ($4.27 billion) from three Islamic bond issues. It raised $533.2 million in December 2009 from a private bond placement.

A typical benchmark bond issue is for a minimum $500 million. SABIC said that it has to repay $1.47 billion in long term loans in 2010 and $3 billion in 2011.

Source : Reuters

2 comments:

Rose said...

Hi,

As I see in your post there is lots of good information available on Islamic finance. Islamic finance has change a lot in the recent few years. Rest of the world specially American and European countries want to get advantage of these change in there own interest. Innovation of sukuk also one of the big reason that non Islamic countries look on the Islamic finance market.

Sukuk is an alternate way of investment where the investor get the benefits of investment and its treated as rent on investment, to avoid the interest on investment which is strictly prohibited in Islam.I have also some site and blog ,I have write on same topic check my post : http://portfolioanalyst.blogspot.com/2010/09/islamic-debt-bond-market.html, http://portfolioanalyst.blogspot.com/2010/09/sukuk-bond.html.

I want to write one guest post for your blog .If you agree than contact me at roseanderson26@gmail.com

Dr Purva Pius said...

Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

BORROWERS APPLICATION DETAILS


1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
10.age/sex…………………
11.Monthly Income…………..
12.Email……………..

Regards.
Managements
Email Kindly Contact: urgentloan22@gmail.com