Sadara Basic Services, the Tadawul-traded firm formed to handle parent company Sadara Chemical’s sukuk, announced on the Saudi stock exchange on 26 November that Sadara Chemical has requested its consent to reprofile its debt. The subsidiary said Sadara Chemical wishes to “amend certain commercial terms” relating to a SR7.5bn ($2bn) sukuk issued on 31 March 2013 and expiring on 15 December 2028. Sadara Basic Services aims to hold discussions with its sukuk holders soon to consider Sadara Chemicals’ request and will announce further details “at a later stage.”

The announcement is the latest move in a bid by Sadara partners Aramco and Dow to reorganize their debts after annual losses of $1.02bn in 2018 and $3.87bn in 2019. The latter included a $1.73bn impairment in Q4 2019 attributed to “restructuring, goodwill impairment and asset-related charges” (MEES, 31 January). Dow CFO Howard Ungerleider told October’s Q3 earnings call that the Sadara partners are “on target to have an agreement to reprofile Sadara’s project financing debt by year-end” (MEES, 20 November). (CONTINUED - 163 WORDS)