19/05/2004 – Oman Polypropylene LLC (OPP) has mandated a group of four banks to arrange its US$240 million of limited recourse financing facilities to part finance the construction of its new polypropylene plant. The banks have underwritten the full amount of the facilities and will syndicate the transaction shortly after the signing of the facility agreement which is expected to take place on May 31, 2004.
The banks, and their roles, are as follows:
|Arab Banking Corporation (BSC)||Joint Bookrunner
Offshore Account Bank
|Arab Petroleum Investment Corporation (APICORP)||Documentation Bank
Technical & Insurance Bank
|BNP Paribas Facility Agent||Offshore Security Trustee|
|HSBC Bank plc||Joint Bookrunner
Hedging Coordinating Bank
Prior to the mandating of the four banks, Arab Petroleum Investments Corporation (APICORP) acted as Structuring Bank for the financing.
Background Information on the OPP Project
OPP is owned by Oman Oil Company (80%) and LG International Corp. (20%). The project will have an initial nameplate capacity of 340,000 tonnes per annum of various grades of polypropylene. Propylene feedstock will be supplied by the Sohar Refinery Company, which is currently constructing a new 116,000 barrels per stream day deep conversion refinery on an adjacent site in the Sohar Industrial Area, Oman. The refinery will also supply various utilities to the OPP plant. Construction of the OPP plant is scheduled to commence in 2004 and will be undertaken by a consortium of LGI and LG Engineering & Construction Corporation. LGI will also act as Marketer and Offtaker for the majority of polypropylene produced by the plant.
For enquiries, please contact:
Dr Mohammed Benayoune, Chief Executive Officer, OPP +968 562 668
Darren Davis, APICORP