Saudi Kayan to raise $4b in debt

Manama: Saudi Kayan Petrochemical is raising $4 billion in loans and export credits, including as much as $2 billion through debt that complies with Islamic law, a banker familiar with the deal said yesterday.

Presentations to investors start within two weeks, and will take part in the Middle East, Europe and Asia, said the banker, who did not want to be identified.

Saudi Kayan is a $10 billion project 35 per cent owned by Saudi Basic Industries Corp, 20 per cent by Al Kayan Petrochemical Co and 45 per cent by Saudi citizens. Sabic is managing the financing process.

Saudi Arabia's Al Rajhi Bank has already agreed to provide a $650 million loan. That is over and above the $4 billion Saudi Kayan is seeking to raise.