Aramco and Dow reach deal on Sadara debt restructuring, allocate more gas

Saudi Aramco owns 65 percent of the capital of Sadara Chemical Company with the remainder held by Dow. (File/AFP)

• Saudi Aramco and Dow have agreed to guarantee up to an aggregate of $3.7 billion of senior debt principal in proportion to their ownership interests in Sadara

RIYADH: Saudi Aramco said it restructured its debt financing for Sadara Chemical Company, its joint venture with Dow Chemical.
The Saudi national oil company also said an agreement had been reached to allocate more natural gas feedstock to the joint venture, which has been building the world’s biggest chemical complex ever delivered in a single phase, in Jubail.
Saudi Aramco and Dow have agreed to guarantee up to an aggregate of $3.7 billion of senior debt principal in proportion to their ownership interests in Sadara, Aramco said in a stock exchange filing.
The terms of the restructuring also include a principal repayment grace period until June 15 2026 and an extension of the final maturity date from 2029 to 2038, in connection with all of the facilities.
Saudi Aramco owns 65 percent of the capital of Sadara Chemical Company with the remainder held by Dow.
Sadara is delivering the world’s largest chemical complex ever built in a single phase, with 26 integrated manufacturing plants that will produce more than three million tons of products every year.