- Region: The Middle East
- Manufacturing and Services
- Overseas Investment Loans
April 1, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed March 31 two loan agreements in the aggregate amount of up to USD490 million (JBIC portion) with The Saudi Methacrylates Company (SAMAC) in Saudi Arabia. These loans are cofinanced with Commercial Banks. In these loans, JBIC bears the political risk, thereby performing the role of mitigating local risk associated with the strategic overseas business deployment of Japanese company.
These loans provide funds required for the manufacturing and sales business of methyl methacrylate (MMA) monomer (annual production: 250 thousand tons) and poly methyl methacrylate molding materials (PMMA) (annual production: 40 thousand tons) to be conducted by SAMAC, in which Saudi Basic Industries Corporation (SABIC) and MITSUBISHI RAYON CO., LTD. (Mitsubishi Rayon) have made joint investment, in Al-Jubail industrial area in the east of Saudi Arabia.
The global demand for MMA monomer and PMMA has been growing steadily in China and elsewhere and it is expected to continue to increase at more than the world growth rate. These loans will contribute to maintaining and improving the international competitiveness of Japanese industries through financial support for the competitive MMA and PMA manufacturing and sales business, with Mitsubishi Rayon making most use of strongly cost competitive Saudi Arabian gas as raw material, utilities and infrastructure.
As Japan's policy-based financial institution, JBIC will continue to provide financial support for the overseas deployment of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.