International law firm Baker & McKenzie has advised The Dow Chemical Co and its subsidiaries on Islamic financing worth $1.4 billion to Saudi Acrylic Acid Co (SAAC), Saudi Acrylic Monomers Co (SAMCO), and Saudi Acrylic Polymers Co (SAPCO). The project financing will go to support the construction and operation of three integrated petrochemical plants in the Jubail Industrial City in The Kingdom of Saudi Arabia.

Dow is one of the four sponsors in the joint venture with the others being the National Industrialization Co (Tasnee), the Sahara Petrochemicals Co (Sahara), and Evonik Industries AG (Evonik). Baker & McKenzie also fielded a separate team to advise Evonik on the project.

The Baker & McKenzie team was led by Charles Hallab, partner at the Chicago office, who also advised on project documents. Hallab was assisted by associate Mohamed Barakat, who is also based in Chicago. Bahrain partner Gordon Prestige advised on the financing side, and was assisted by Bilal Rana from the Riyadh office. The project companies, meanwhile, were represented by Linklaters, and the financiers were represented by Clifford Chance.

The SAMCO joint venture is expected to construct and operate the first acrylic monomer production plant in the region. SAMCO will produce and sell up to 70,000 tonnes per annum of glacial acrylic acid to SAPCO, and up to 160,000 tonnes per annum of butyl acrylate to SAAC and a Dow offtaker.

The plant is scheduled to begin production in 2013. ALB

Shaheen Pasha is Middle East Regional Editor at ALB. Follow her on Twitter: @ALB_TheBrief.

Other related stories: