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, or sukuk, to help fund a large petrochemical complex in the east of the kingdom.
The 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 Islamic bond sale forms part of a $12.5 billion debt package currently being raised to fund the construction of the project, which will produce more than 3 million tonnes of petrochemicals each year when completed in 2016.
Strong demand from investors in Saudi Arabia meant the sukuk’s size was increased from the original target of 5.25 billion riyals, the statement added.
Deutsche Bank, Riyad Bank, Alinma Bank and Bank Al Bilad arranged the sukuk, which was launched last month. ($1 = 3.7502 Saudi riyals) (Reporting by Reem Shamaeddine; Writing by David French; Editing by Dinesh Nair)