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Abu Dhabi, UAEMonday 17 December 2018

Saudi Kayan secures $1.2bn Islamic loan to repay maturing debt

News follows a 149 per cent rise in second-quarter net profit

Jubail Industry City in Saudi Arabia. Saudi Kayan has secured a loan to clear maturing debt. Ali Al Mubarak / arabianEye / Corbis
Jubail Industry City in Saudi Arabia. Saudi Kayan has secured a loan to clear maturing debt. Ali Al Mubarak / arabianEye / Corbis

Saudi Kayan Petrochemical said on Tuesday it had secured a US$1.2 billion Islamic loan from National Commercial Bank (NCB) to help repay a previous facility with the lender that matures next week.

The company, an affiliate of Saudi Basic Industries Corp, or Sabic, said the new loan was for five years, replacing the seven-year loan of the same size it signed with NCB in August 2010. That loan will expire on August 16.

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Saudi petrochemical producer Sabic says second quarter profit falls 25 per cent

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Kayan beat analysts' forecasts last month with a 149 per cent rise in second-quarter net profit to 242 million Saudi riyals (Dh238.7m), citing higher volumes and prices and improved operating performance.

In Tuesday's statement, Kayan said it had secured an additional $150 million facility with NCB to finance existing expansion projects, including increasing ethylene production capacity.

* Reuters