ANNOUNCEMENT 08 Oct 2012

On 8 October 2012, the Saudi Fund for Development (SFD) signed a financing agreement with the Saudi company National Petrochemical Industrial Co. The financing agreement is part of SFD's Saudi Export Program (SEP) and contains a local sourcing requirement.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



The Saudi Fund for Development, press release of 10 October 2012: SFD signs financing agreement of national products by (NATPET) amounting to SAR (75) millions: http://www.sep.gov.sa/webcenter/faces/oracle/webcenter/page/scopedMD/s496069c3_e35f_448c_8a0a_0c2ed8086bcf/Page29.jspx?wc.contextURL=%2Fspaces%2Fexportprogram&DFile=SEP_ACCORDION_DATAFILE&NRow=29&wc.originURL=%2Fspaces%2Fexportprogram%2Fpage%2FLatest%2BNews%2BDetails&_afrLoop=453345920097873#%40%3FNRow%3D29%26_afrLoop%3D453345920097873%26wc.originURL%3D%252Fspaces%252Fexportprogram%252Fpage%252FLatest%252BNews%252BDetails%26DFile%3DSEP_ACCORDION_DATAFILE%26wc.contextURL%3D%252Fspaces%252Fexportprogram%26_adf.ctrl-state%3D19c0dvns21_4523

National Petrochemical Industrial Co., About NATPET: http://www.natpet.com/company-profile/

The Saudi Export Program, Introduction: http://www.sep.gov.sa/webcenter/faces/oracle/webcenter/page/scopedMD/s496069c3_e35f_448c_8a0a_0c2ed8086bcf/Page2.jspx?wc.contextURL=%2Fspaces%2Fexportprogram&DFile=SEP_PROJECT_DATAFILE&NRow=0&wc.originURL=%2Fspaces%2Fexportprogram%2Fpage%2FFORWARD&_afrLoop=279550133356624#%40%3FNRow%3D0%26_afrLoop%3D279550133356624%26wc.originURL%3D%252Fspaces%252Fexportprogram%252Fpage%252FFORWARD%26DFile%3DSEP_PROJECT_DATAFILE%26wc.contextURL%3D%252Fspaces%252Fexportprogram%26_adf.ctrl-state%3Dnazuebmo7_2622

The Saudi Fund for Development, What IS SFD?: http://www.sep.gov.sa/webcenter/faces/oracle/webcenter/page/scopedMD/s5dc73d77_7324_4d08_b347_444721019cba/Page2.jspx?wc.contextURL=%2Fspaces%2Fsfdinternet&wc.originURL=%2Fspaces%2Fsfdinternet%2Fpage%2FWhat%2Bis%2BSFD&_afrLoop=276574034869471#%40%3F_afrLoop%3D276574034869471%26wc.originURL%3D%252Fspaces%252Fsfdinternet%252Fpage%252FWhat%252Bis%252BSFD%26wc.contextURL%3D%252Fspaces%252Fsfdinternet%26_adf.ctrl-state%3Dnazuebmo7_2174

The Saudi Export Program, Eligible parties for SEP benefits: http://www.sep.gov.sa/webcenter/faces/oracle/webcenter/page/scopedMD/s496069c3_e35f_448c_8a0a_0c2ed8086bcf/Page12.jspx?_afrLoop=262217691043248&wc.originURL=%2Fspaces%2Fexportprogram%2Fpage%2FELIGIBLE%2BPARTIES%2BFOR%2BSEP%2BBENEFITS&wc.contextURL=%2Fspaces%2Fexportprogram&_adf.ctrl-state=wivj9vjgj_1467#%40%3F_afrLoop%3D262217691043248%26wc.originURL%3D%252Fspaces%252Fexportprogram%252Fpage%252FELIGIBLE%252BPARTIES%252BFOR%252BSEP%252BBENEFITS%26wc.contextURL%3D%252Fspaces%252Fexportprogram%26_adf.ctrl-state%3Dnazuebmo7_1111


Inception date: 08 Oct 2012 | Removal date: open ended
Still in force

Trade finance

The financing agreement with the Saudi company National Petrochemical Industrial Co has a value of USD 20 million. The agreement is funded through SFD's Saudi Export Program (SEP) and will finance the company's export transactions. The company produces Polypropylene (PP) resin. A similar financing agreement was signed between SFD and National Petrochemical Industrial Co. in 2013 amounting to USD 40 million, see related measure. It is granted under the Saudi Export Program. The Saudi Export Program (SEP) is part of the Saudi Fund for Development and was established in 1999. The program promotes Saudi exports to contribute the country’s GDP and minimize the economic dependence of crude oil. In promoting export of Saudi goods the SEP can support 100% of the value of the eligible export transaction depending on risk and nature of the export. Parties benefiting from the SEP fall into one of the following: Saudi companies and establishments; foreign companies, entities or governments importing or purchasing of Saudi goods or services; or lastly local or foreign banks and financial institutions. According to the Saudi authorities the “SEP has made good achievements by being able to approve export funding and guarantee facilities supporting about SAR 39 Billion (equivalent to US$ 10.4) Billion worth of exports reaching to about 68 countries. Such facilities include direct funding operations amounting to SR (12.7) Billion (ed. approx. USD 3.39 billion). In addition to that, the program has opened lines of credit with several foreign banks amounting to SR (3.5) million (ed. approx. USD 0.93 million).” The Saudi Fund for Development (SFD) was established by Royal Decree No. M/48 of 1 September 1974. The Fund’s main objectives are to: “participate in financing of development projects in developing countries through granting of loans to said countries and to encourage national non-crude-oil exports by providing finance and insurance in support of such exports.

AFFECTED SECTORS

 
Inception date: 08 Oct 2012 | Removal date: open ended
Still in force

Local sourcing

According to the terms of the SFD, the goods and services exported within this transaction must contain a Saudi domestic value of 25% or more.

 
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