Sadara receives CMA approval to launch its Sukuk

The Sukuk will be issued by Sadara Basic Services Company (SBSC), a joint stock company with commercial registration number 2055018374, primarily established for the purpose of issuing the Sukuk on behalf of Sadara.

The total offering size and value will be determined at a later stage by Sadara.

The proceeds of the Sukuk issuance will be used to provide finance for the construction and delivery of a part of the Sadara complex located in Jubail Industrial City II in the Eastern Province of the Kingdom, which will be the world's largest chemical complex ever built in a single phase.

The CMA approved the Sukuk on 1/5/1434H (corresponding to 13/3/2013G) and the Sukuk prospectus (the Prospectus) will be published on 4/5/1434H (corresponding to 16/3/2013G).

The Shari'a structure of the Sukuk has been approved by the joint Shari'a committee formed by Alinma Investment Company (Alinma) and AlBilad Investment Company (AlBilad), and the Shari'a committees of Deutsche Securities Saudi Arabia L.L.C. (Deutsche Bank) and Riyad Capital.

The offering, sale and delivery of the Sukuk is limited solely to Saudi nationals and those other legal persons with a permanent establishment in the Kingdom holding a current commercial registration number issued by the Ministry of Commerce and Industry, and maintaining a bank account in the Kingdom.

The Sukuk will be a floating rate Sukuk, with a tenor of approximately sixteen (16) years. The investors will receive an expected return of six (6) month SAIBOR plus a margin per annum to be distributed semi-annually.

Established in October, 2011, Sadara is a limited liability company developed by Saudi Arabian Oil Company and The Dow Chemical Company. Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City II, in the Kingdom's Eastern Province.

Once complete, the complex is expected to be one of the world's largest integrated chemical facilities, and the largest ever built in a single phase. First production units are expected to come on line in the second half of 2015, with all production units coming on line in 2016.

Sadara has appointed Deutsche Bank, AlBilad, Alinma and Riyad Capital as joint lead managers and joint book runners. The joint lead managers and joint book runners appointed Milbank, Tweed, Hadley & McCloy LLP and Zeyad Khoshaim Law Firm in association with Allen & Overy LLP as their legal advisors. Sadara and SBSC appointed Hatem Abbas Ghazzawi & Co. and Dr. Waleed N. Al-Nuwaiser in association with White & Case LLP as their legal advisors.