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Project Financing

On June 24, 2010, SATORP signed the finance documents for US$8.5 billion of senior project finance facilities for the Jubail refinery.

It was an exceptionally significant milestone for the company in many ways. The International Bank and Export Credit Agencies (ECAs) recognized SATORP’s Project Financing scheme as a truly world class and one of the most complex project financing designs ever undertaken. The world’s economic crisis peaked in 2008, and the fact that SATORP was still able to retain the interests and attentions of the lenders throughout this period is a reflection of the robust vigor of the project itself. The availability of the financing marks another important step in the progress of this 400,000 barrel per day world-class, full conversion refinery in Jubail, Saudi Arabia, which is scheduled to be operational in 2013. SATORP proceeded to raise $1bn by way of a Sukuk offering within the Kingdom in 2011. This was another first, not just for SATORP, but also for the project financing community. It was the first time that Sukuk funds had been used in a project financing.

The International Initial Mandated Lead Arrangers were:

Credit Agricole - CIB; Société Générale; Kfw - IPEX Bank; Deutsche Bank; HSBC; Bank of Tokyo-Mitsubishi UFJ; Mizuho Corporate Bank; Standard Chartered Bank; Sumitomo Mitsui Banking Corporation; Export Development Canada; Arab Bank; Barclays; Citibank; JP Morgan; Royal Bank of Scotland; Arab Petroleum Investments Corporation; and Gulf International Bank.

The Saudi Arabian Initial Mandated Lead Arrangers were

Banque Saudi Fransi; Riyad Bank; Samba Financial Group; Arab National Bank; Saudi British Bank; National Commercial Bank; Al Rajhi Bank; Alinma Bank; Saudi Hollandi Bank; Islamic Development Bank; Bank Al-Jazira; and Saudi Investment Bank.

Participation from Export Credit Agencies included the following:

Korea Export Insurance Corporation (KEIC); Compañía Española de Seguros de Crédito a la Exportación (CESCE); Export-Import Bank of Korea (K-EXIM); Compagnie Française d'Assurance pour le Commerce Extérieur (COFACE); Japan Bank for International Cooperation (JBIC); Nippon Export and Investment Insurance (NEXI); and Euler Hermes Kreditversicherungs-AG (Hermes).

Credit Agricole CIB and Banque Saudi Fransi acted as financial advisors to SATORP and Allen & Overy as SATORP’s international and local legal counsel. Société Générale acted as Documentation Bank on the conventional tranche and Crédit Agricole CIB as Documentation Bank for the Islamic Tranche. Linklaters LLP acted as lenders’ international legal counsel and Abdulaziz H. Fahad as lenders’ local legal counsel.

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