Milbank Advises Lenders on the Completion of Petro Rabigh (Phase 2)

Milbank LLP advised Japan Bank for International Cooperation (“JBIC”), Public Investment Fund of Saudi Arabia (“PIF") and commercial and Islamic banks as the lenders in connection with the financial completion of the Rabigh Phase 2 Project. On 30 September 2020, Petro Rabigh announced the successful satisfaction of the commercial operations condition for the Petro Rabigh phase 2 project and the subsequent release and termination of the completion guarantees provided by the shareholders, Sumitomo Chemical and Saudi Aramco.

As part of the 2015 project financing agreements for the Rabigh Phase 2 Project, Sumitomo Chemical and Saudi Aramco each provided a financial guarantee for 50% of the US$5.2 billion amount financed by JBIC, PIF and the commercial and Islamic lenders. Achieving the project completion date and the release of the guarantees represents a key milestone for Petro Rabigh and the Sponsors, especially in the current challenging environment.

In continued support of the Petro Rabigh Refining and Petrochemicals Project, Sumitomo Chemical and Saudi Aramco have provided Petro Rabigh with joint revolving loans and facility agreements of US$2 billion.

Rabigh Refining & Petrochemical Company is a Saudi Arabia-based company which produces and markets refined hydrocarbon and petrochemicals. The company was a joint venture between Saudi Aramco and Japan’s Sumitomo Chemical which is now publicly held. 

The Milbank deal team was led by Global Project, Energy & Infrastructure Finance partner John Dewar with associates Munib Hussain, Andrew Pendleton, Bader Thabti and Olivia Anderson.

Milbank advised on the original US$5.2 billion expansion financing for the Petro Rabigh Refining and Petrochemicals Project in 2015.