Saudi company obtains 1.7 bln riyals Islamic financing for construction of inorganic chemicals industrial complex
Khair Inorganic Chemical Industries Co, or InoChem, has signed two Islamic credit facilities totaling 1.7 billion Saudi riyals to finance the construction and operation of an industrial complex.
InoChem obtained 875 million riyals ($233.33 million) in long-term financing and 825 million riyals in a bridging facility, its parent company Sipchem said in a bourse filing on Monday (Dec 16).
The latter will go towards a loan the company obtained last year from the Saudi Industrial Development Fund.
The credit facilities were signed with Al-Inma Bank and Al-Bilad Bank, for a tenure of 13 years.
InoChem was set up in 2016 as a public-private partnership to build and run a greenfield soda ash and calcium chloride industrial complex in the Saudi eastern coastal city of Ras Al Khair.
InoChem’s industrial complex is scheduled to start commercial production in early 2022 and it aims to control 40% market share in its sector in the Arabian Gulf states by 2023 as the only facility of its kind in the region.
Soda ash, or sodium carbonate, is an essential raw material in glass, chemicals, detergents and other industrial products.
Calcium chloride is known for its application in oil drilling, snow melting, sand stabilisation, and cement setting.
InoChem says on its website the industrial facility will also include processing and recycling units “to ensure achieving highest level of environmental protection standards and cost optimisation.”
($1 = 3.75 Saudi riyals)
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