Saudi Aramco announced June 16 the signing of the main financing agreements for the world-class integrated Sadara chemical project, a joint venture between Saudi Aramco and The Dow Chemical Company at Jubail Industrial City II on the east coast of Saudi Arabia.

Sadara Chemical Company (Sadara) entered into definitive agreements with a number of export credit agencies, commercial banks and the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia for approximately $10.5 billion of additional project financing.

The financing supplements the $2 billion raised through a Sukuk islamic bond issuance in April, 2013, bringing the total Sadara project financing raised to approximately $12.5 billion, which will be used to fund the construction and start-up of the joint venture.

"These financing agreements demonstrate the significant progress that Sadara has made since we signed the JV agreement with our partner Dow in 2011," said Khalid A. Al-Falih, president and CEO, Saudi Aramco.

"The strong response from the lenders demonstrates confidence in Sadara and in its capabilities as it moves forward to startup in 2015. As the project execution moves ahead, I’m more confident than ever in the future of this bold venture, which will become a significant cornerstone of Saudi Aramco's ambitious downstream growth strategy as well as contributing to the Kingdom’s economic diversification and job creation aspirations," Al-Falih said.

Once complete, Sadara will be the largest chemicals complex ever built in a single phase. The complex will be comprised of 26 manufacturing units, will possess flexible cracking capabilities and is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016.

Sadara will also facilitate the development of conversion industries in Jubail and in the Kingdom in general, and the project and its conversion park will provide thousands of direct and indirect job opportunities.

Sadara and the adjoining conversion parks are located in the premier industrial site developed and administered by the Royal Commission of Jubail and Yanbu'. Sadara will establish a world-scale manufacturing footprint that delivers a full range of value added, finished products destined for the emerging markets of Asia, the Middle East, Eastern Europe and Africa.