Sadara Chemical Company has announced financial close for the funding of approximately US$10.5 billion, marking the completion of project financing for Sadara which is an unprecedented joint venture developed by the Saudi Arabian Oil Company  and The Dow Chemical Company.

The Main Financing supplements the US$2 billion raised through a Sukuk issuance in April, 2013, bringing the total Sadara project financing raised to approximately US$12.5 billion, the largest project financing ever in the Middle East. Three banking sources told Reuters that the financing package consists of loans from banks, export credit agencies and the state-owned Public Investment Fund. The deal included a $4.975 billion direct loan from the US Export-Import Bank.

The unique Sadara chemical complex now being built in the Jubail Industrial City II of Saudi Arabia is the world's largest to be built in a single phase. Comprised of 26 world scale manufacturing units, the complex will be the first in the Middle East to use refinery liquids, such as naphtha, as feedstock.

Sadara is on track to deliver its first products in the second half of 2015, with the complex in full operation in 2016.

Located right next to the Sadara complex, PlasChem Park is a collaborative effort between Sadara and the Royal Commission for Jubail and Yanbu.

Source: Sadara & US Export-Import Bank