Al Khobar : Saudi-based Islamic Development Bank (IDB) said yesterday that it agreed to grant state oil giant Saudi Aramco a $120 million (Dh440.4 million) loan to build a $12.8 billion refinery in Jubail with Total.
The project is being fin-anced by all Saudi commercial banks, the Saudi Industrial Development Fund, Public Investment Fund, Barclays, JP Morgan, Deutsche Bank, HSBC, BNP Paribas and Citigroup, IDB said in a statement.
The loan is part of an Islamic facility, IDB said.
Funding for the refinery would include a sukuk issue which could be over $500 million, a project director of the joint venture firm Saudi Aramco Total Refining and Petrochemical Company (Satorp) said in October.
Financing deals for around $8 billion of the total cost of the refinery would be completed in the second quarter this year, Salem Shaheen, chief executive of Satorp said on Wednesday.
The 400,000 barrels per day crude refinery will start production in 2013.
Aramco currently owns 62.5 per cent of the plant, while Total holds the rest. But an IPO scheduled to take place in two to three years will leave Aramco with a stake equal to Total's.