Sadara Chemical Company has secured $2bn from Sukuk investors to finance its 3mn tons/year $20bn petrochemicals project in Jubail. Investor appetite for the issue was strong, and when the SR5.5bn ($1.47bn) offering came in 2.6 times oversubscribed, it was increased to SR7.5bn ($2bn), Sadara announced on 2 April.

This represents a milestone for the Kingdom because it is the first ever Sukuk funding to be finalized ahead of the other types of financing being supplied to a project. The Satorp 400,000 b/d export refinery was the first in Saudi Arabia ever to issue Sukuk for a project in October 2011, but this replaced other financing that had already been received. (CONTINUED - 639 WORDS)