US chemicals giant Dow Chemicals announced during its 28 January Q4 results that it has “reached an agreement in principle on key terms for Sadara debt reprofiling with all lenders.” Sadara, a 65:35 JV between Saudi Aramco and Dow, operates a 5.5mn t/y petchems facility at Jubail on the Saudi Gulf coast. Dow expects that the agreement will be signed off before the end of this quarter, enabling Sadara “to be cash flow self-sufficient going forward.” CEO Jim Fitterling labelled the agreement in principle “a significant milestone”

Sadara Basic Services, the Tadawul-traded firm formed to handle parent company Sadara Chemical’s sukuk, had previously announced in November that Sadara Chemical has requested its consent to reprofile its debt. Sadara Chemical had announced its wishes to “amend certain commercial terms” relating to a SR7.5bn ($2bn) sukuk issued on 31 March 2013 and expiring on 15 December 2028 (MEES, 27 November 2020). In a 26 January Tadawul announcement, Sadara Basic Services said that a Certificate holders Special Meeting had been held and that the request had been approved unanimously. (CONTINUED - 299 WORDS)