The US Export and Import Bank has approved a record-breaking USD 4.98 billion direct loan to help build a petrochemical complex in Saudi Arabia.

Mr Fred Hochberg president of Ex-Im Bank said that “The loan to the Sadara Chemical Company, a joint venture between Dow Chemical Company and Saudi Arabian Oil Company is the biggest in the bank's history and will support more than 18,000 American jobs across 13 states."

Approximately 70 companies including Dow, KBR, ABB Inc and more than 20 small businesses are expected to export US goods and services to the facility in Jubail Industrial City II in eastern Saudi Arabia under the loan.

Mr Andrew Liveris chairman & CEO of Dow said that "Ex-Im Bank's action will allow US manufacturers to sell equipment and services to the largest industrial complex ever built in a single phase."

The bank said that the complex is expected to be operational in 2016 and will consist of 26 processing units producing more than 3 million metric tons of 10 major categories of chemical products and specialty plastics per year.

Government export credit agencies in Britain, Germany, France and South Korea are also helping to finance construction of the complex. The loan marks Ex-Im Bank's second petrochemical transaction in Saudi Arabia and its second huge financing project in recent weeks in the Gulf region.

It announced USD 2 billion direct loan on September 7 to Barakah One of the UAE to buy US equipment and construction services to build one of the world's largest nuclear power plants.

Source - Reuters

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