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Sadara announces successful closing of its Sukuk which was oversubscribed by 2.6 times

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April 2013 Dhahran, Saudi Arabia.

Sadara Chemical Company (“Sadara”) announced the successful closing of Sukuk issued through its subsidiary Sadara Basic Services Company ("SBSC"). The Sukuk has received strong investor demand, resulting in 2.6 times oversubscription based on the initial offering size of SAR5.25 billion. In keeping with this demand, Sadara has up-sized the issuance to SAR7.5 billion.

The Sukuk are floating rate Sukuk and will have a tenor of approximately sixteen years. The Sukuk investors will receive an expected return of 6 month SAIBOR plus 95 basis points per annum, to be distributed semi-annually.

The net proceeds of the issue of the Sukuk will be used to provide finance for, and procure the construction and delivery of, plants forming part of a chemicals complex located in Jubail Industrial City II in the Eastern Province of Saudi Arabia.

SBSC is a joint stock company with commercial registration number 2055018374, established in Saudi Arabia for the purpose of issuing the Sukuk on behalf of Sadara. It should be noted that the Sukuk issuance was approved by the joint shariah committee of Alinma Investment Company and AlBilad Investment Company, by the shariah committee of Riyad Capital and the shariah advisor of Deutsche Securities Saudi Arabia L.L.C.

Sadara has appointed AlBilad Investment Company, Alinma Investment Company, Deutsche Securities Saudi Arabia L.L.C. and Riyad Capital as joint lead managers and joint book runners. The legal advisers to the joint lead managers are Milbank, Tweed, Hadley & McCloy LLP and Zeyad S. Khoshaim Law Firm in association with Allen & Overy LLP. In addition, the legal advisers to SBSC and Sadara are Dr. Waleed N. Al-Nuwaiser in association with White & Case LLP, and Hatem Abbas Ghazzawi & Co.

Established in October 2011, Sadara is a limited liability company developed by Saudi Arabian Oil Company and The Dow Chemical Company. Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City II, in the Eastern Province of Saudi Arabia. Once completed, the complex is expected to be one of the world’s largest integrated chemical facilities, and the largest ever built in a single phase. First production units are expected to come on line in the second half of 2015, with all production units coming on line in 2016.

The Sukuk prospectus (“Prospectus”) was published on 16 March 2013 (corresponding to 4/5/1434H) and more details on the Sukuk, including the prospectus, are available on the websites of sadara (www.sadara.com ), sbsc (www.sadarabasicservicescompany />prospectus.pdf) and the joint lead managers and joint book runners (www.db.com/mena, www.albiladinvest.com, www.alinmainvest.com and www.riyadcapital.com).

This press release is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

The Capital Market Authority and the Saudi Stock Exchange (Tadawul) take no responsibility for the contents of this announcement, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this announcement.

editorial information:

Chris Chan
Sadara Chemical Company
Tel: +966 3 8135999 Ext.1112
Email: P-GA@sadara.com