Huntsman and Saudi's Zamil raise $195m Islamic loan

Chemical maker Huntsman Corporation and Saudi Arabia's Al Zamil Group have raised $195 million (Dh715.7m) through an Islamic loan to finance a petrochemical plant in the kingdom, the lead arranger said on Sunday.

The deal includes both murabaha and ijara tranches, Saudi Hollandi Bank said in a statement, without giving further details.

The financing will be used to finance $289 million the Arabian Amines project, a 27,215-tonne-per year ethyleneamine plant in Jubail Industrial City on Saudi Arabia's eastern coast.

Ethyleneamine is used in various applications in the chemical, agricultural, pharmaceutical and paper industry.

Islam bans lending on interest and in a murabaha deal a lender buys a commodity and sells it to the consumer at a higher price, locking in profit. Ijara is a leased-based structure.

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