Jurong Aromatics Secures Funds for Singapore Petrochemical Plant

Jurong Aromatics Corporation has secured $1.56bn of debt financing from ten banks to build a petrochemical plant in Singapore.

Around 80% ($1.24bn) of the debt will be financed or guaranteed by two South Korean government export agencies for a period of up to 15 and a half years.

The $2.4bn project involves the development of a condensate splitter and aromatics plant on Singapore's Jurong Island.

The plant will produce 1.5 million tons of aromatics and 2.5 million tons of transport fuels a year.

It is expected to become operational in 2014 with construction scheduled to start next month.

South Korea's SK group and Chinese polyester maker Jiangsu Sanfangxiang Group are the project's largest shareholders, with 30% and 25% stakes respectively.

In May 2009, Jurong Aromatics Corporation delayed the construction of the plant as it struggled to obtain funding due to a credit crunch following the financial crisis.