Saudi-listed Advanced Petrochemical Company said its subsidiary Advanced Polyolefins Industry Company has closed Shariah-compliant facilities worth 6.1 billion Saudi riyals ($1.62 billion) to finance the construction of three plants in Jubail Industrial City.

The financial close comes after the company signed various Islamic facility agreementswith a consortium of financial institutions on 6 July 2022 to construct propane dehydrogenation, polypropylene and isopropanol plants.

The company achieved the financial close on 4 December 2022, under the senior debt facilities arranged on a non-recourse basis with a consortium of financial institutions comprising Alinma Bank, Al Rajhi Banking and Investment Corporation, Arab National Bank, Arab Petroleum Investments Corporation, Bank Albilad, Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank.

Advanced Polyolefins is a joint venture between Advanced Global Investment Company, a 100 percent owned subsidiary of Advanced, and SK Gas Petrochemical, a subsidiary of South Korea’s SK Gas Co., to produce 843,000 tonnes per annum propylene, 800,000 tonnes per annum polypropylene and 70,000 tonnes per annum isopropanol.

More than 45 percent of engineering, procurement and construction (EPC) activities have been completed by the end of November 2022.

The statement said that the plants are scheduled to commence commercial operations in the second half of 2024.