HSBC's project and export finance division in London and SABB, the bank's associate bank in Saudi Arabia, have signed a US$138mn loan facility with Jubail Energy Services Company(JESCO) in support of a seamless pipe project in Jubail Industrial City in Saudi Arabia.
The funds are partially funding the engineering, procurement and equipment supply (EPC) contract with Italian firm Danieli & C. Officine Meccaniche.
It includes a US$80mn facility backed by Italy’s ECA, Sace and provides JESCO with a long tenor of 12 years, at what are said to be competitive costs of funds.
JESCO has been set up to address the demand for oil-related tubular goods in Saudi Arabia. Saudi Arabia generally imports finished pipe, but Jesco will be capable of producing 400,000tons of seamless pipes per year, helping lessen the country’s reliance on imports.
"We are delighted to have concluded this landmark financing facility. This assignment brought together HSBC’s global ECA capabilities and the strengths of
SABB in Saudi Arabia to provide JESCO with a complete financing package addressing all of their banking requirements,” comments Jeff Bailey, managing director in HSBC’s project and export finance division.
Reader Comments