Saudi industrial giant SABIC said on Monday it had signed a $1 billion Islamic loan with Deutsche Bank to help fund future projects. "Under this deal, SABIC will be able to outsource banking facilities to finance part of its expansion projects and future investments," a statement on the firm's Web site said.
SABIC (Saudi Basic Industries Corp), the largest capitalised firm on the Saudi bourse, says it has total current expansion projects valued at between $25 and $29 billion.
SABIC, the world's most profitable petrochemical firm, has in recent years looked at investing in China's fast-expanding petrochemical sector but has yet to land a concrete deal.
Chinese President Hu Jintao visited the firm's headquarters in Riyadh last month to discuss plans to build a $5.2 billion oil refinery and ethylene plant with China's Shide Group.
Chinese sources have said SABIC was in talks with Sinopec, China's top refiner and petrochemicals producer, over a separate 1 million tonne-per-year ethylene plant. SABIC has not commented on the reports. SABIC has blamed high gas and iron ore prices for first quarter net profits posted last month which were below market expectations.
SABIC is 70 percent-owned by the Saudi government and 30 percent by private investors in Saudi Arabia and other countries of the Gulf Co-operation Council.