The Saudi Hydrogen Peroxide Company, a joint venture between Sadara Chemical Company and the Solvay Group, announced today that it has begun constructing one of the world’s largest hydrogen peroxide plants in the Kingdom of Saudi Arabia.
With a capacity exceeding 300,000 tonnes per year, and a planned start up in 2015, the mega plant is being built at Sadara’s chemical complex in Jubail Industrial City. The hydrogen peroxide output will be used as feedstock for the hydrogen-peroxide-to-propylene-oxide plant also located in Jubail Industrial City.
The project’s funding comprised a fronting bank loan which was a Murabaha facility of approximately SAR 640 million to match the amount of the shareholder loan facility. The Sadara Chemicals Complex was also financed by issuing a Sukuk.
On behalf of the Saudi Hydrogen Peroxide Company, Operis was pleased to provide an audit of the financial model representing the transaction, which included a review of the model’s tax and accounting treatments, and a review of the transaction’s Islamic finance documentation.