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Saudi Aramco, Dow JV raises $2 bln from sukuk

posted Apr 2, 2013, 10:52 PM by Jignesh Ajmera
KHOBAR, April 2 (Reuters) - Sadara Chemical Co, a joint venture between Saudi Aramco and Dow Chemical , raised 7.5 billion riyals ($2 billion) from the sale of an Islamic bond to fund a large petrochemical complex in the east of the kingdom.

The Islamic bond, or sukuk, which has a lifespan of 16 years, was priced at 95 basis points over the six-month Saudi interbank offered rate (Saibor), a statement from Sadara said on Tuesday.

The sale is part of a $12.5 billion debt to fund the construction of the project, which will produce more than 3 million tonnes of petrochemicals each year when completed in 2016.