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DMEA NEWS IN BRIEF DMEA

Saudi Aramco’s multi- JYIC inks partnership deal Egypt’s Rubex International

tranche jumbo-sized with SABIC, Vopak to own swings to a loss

bond issuance get strong 20% stake in Chemtank Rubex International incurred a net loss of
EGP7.73mn ($490,000) in the first nine
investor demand SABIC and Vopak Holding Terminals months of 2020, according to the company’s
BV signed a partnership agreement with
November 15thfinancial statements filed to
The world’s largest oil producer Saudi Jubail and Yanbu Industrial Cities Co the Egyptian Exchange. In the July-September
Aramco’s multi-tranche, USD-denominated (JYIC), owned by the Royal Commission period of 2019, the company posted a net
jumbo-sized bond issuance was well for Jubail and Yanbu, under which JYIC profit of EGP4.5mn
received by investors who placed over will become a 20% stake partner in Jubail The company’s board of directors ratified
$30bn in orders, media sources reported. Chemical Storage and Services Company the subscription outcomes as the issued
The five-tranche issuance is needed to (Chemtank). capital increased by EGP43.949mn.
partly fund a $37.5bn dividend for the The agreement aims at strengthening Rubex is an Egypt-based joint-stock
second half of 2020 and partially pay for the strategic integration among the three parties shareholding company engaged in acrylic and
$69.1bn acquisition of a 70% equity stake to scale up the scope of collaboration plastic products manufacturing. The company
in Saudi Basic Industries Corp (SABIC). between local and international manufactures and distributes household
Aramco tightened its initial price guidance organisations. This will ultimately help plastic and acrylic products that include
by 15-20 basis points (bps) to around 125 achieve the goals of the National Industrial acrylic bathtubs and corner bathtubs, acrylic
bps over US Treasuries (UST) for a three- Development and Logistics Program, a key shower trays, acrylic bathroom panels, and
year tranche, around 140 bps over UST for part of Saudi Vision 2030. others..
five-year bonds, around 160 bps over UST Commenting on the event, Abdullah
for 10-year notes, around 185 bps over UST Al-Saadan, president, Royal Commission
for a 30-year tranche and around 210 bps for Jubail and Yanbu, said that JYIC enables ENOC Link offers
over UST for 50-year bonds. the Royal Commission to make optimal
Morgan Stanley, Goldman Sachs, Citi, use of its assets and provide services in environment-friendly
HSBC, NCB Capital and JPMorgan were the Royal Commission cities, thus achieve
hired as active book runners on the deal. sustainability and efficiency. He also said ENOCBlue diesel exhaust
that the agreement is part of Saudi Vision
2030. additive for commercial
Fitch revises SABIC’s industrial investor logistical services fleets
“It invests in the development of the
outlook down to negative, sector, which plays an active logistical ENOC Link, the digital mobile fuel delivery
role in serving industries, especially
affirming long-term issuer petrochemicals. This will help create service for businesses in the UAE, announced
an attractive environment and enhance
it started offering ENOC Blue to is customers
rating at A capabilities of the business sector,” Al- among fleet operators. The offering will enable
Saadan said.
commercial fleets to minimise their impact on
Fitch, a ratings agency, affirmed Saudi Basic Yousef Al-Benyan, SABIC vice chairman the environment.
Industries Corporation (SABIC)’s long-term and CEO, said the agreement builds on the ENOCBlue breaks down toxic nitrogen
issuer default rating at A, revising the outlook historical partnership between SABIC and oxides in the fuel exhaust into nitrogen and
down to negative from stable following RCJY. It is an extension of the company’s water vapor which are naturally occurring
similar action on its parent Saudi Arabian Oil continuous coordination in support of gases that are harmless to the environment.
Company (ARAMCO). the industrial sector in the kingdom to The exhaust fluid is injected into the exhaust
SABIC is one of the world’s largest create an appropriate environment to lay system for diesel engines to reduce the
petrochemicals producers, with vertically the foundation for future investment, Al- harmful emissions by almost 90%. The
integrated operations, state-of-the-art Benyan added. Also he recognised on the product has been mandated by ESMA and
global facilities and a top market position contribution of vopak as a global player in recommended for diesel Euro 4 and above
for its products. It stands out as it is a this field. and is a premium product for curb exhaust
commoditised chemical company, albeit one Eelco Hoekstra, CEO of Royal Vopak, emissions.
with a leading cost position and access to said: “The entry of JYIC cements a ENOC Link has deployed a fleet of
low-cost feedstock in Saudi Arabia, which partnership in which the Royal Commission, dedicated delivery trucks with tank capacities
underpins strong profitability and robust SABIC and Vopak have jointly collaborated varying from 800 to 5,000 litres to serve
cash flow generation through the cycle. over the past 20 years to create a world- existing and prospect customers, ensuring
SABIC’s earnings were under pressure in class supply chain infrastructure in Jubail that the increasing demand for the diesel
late 2019 when massive supply additions in and Yanbu. This sets a great platform to exhaust additive is met efficiently.
petrochemicals coincided with global GDP deliver further growth and efficiency in the
deceleration and pressure in automotive kingdom.”
and some other markets. However, its Under the new agreement and subject to
performance improved in the third quarter obtaining all required regulatory approvals,
(July-September) of 2020 with EBITDA JYIC will own 20% of the Chemtank
rising to SAR5.7bn ($1.5bn) from SAR3.5bn shares, making SABIC and Vopak Holding
in the second quarter (April-June) of 2020. Terminals BV owners of 58% and 22%
However, Fitch expects margins to remain respectively..
repressed below 20%; a historic low against a
2016-2019 average of 28%..

P20 www. NEWSBASE .com Week 46 19•November•2020