MIRA INFORM REPORT

Report Date :

13.11.2013

IDENTIFICATION DETAILS

Name :	SAUDI BASIC INDUSTRIES CORPORATION (SABIC)

Registered Office :	Sabic Complex, Exit 8, North Ring Road, Sitteen Street, Al Maather District, PO Box 5101 & 59090 & 42503, Riyadh 11525

Country :	Saudi Arabia

Financials (as on) :	31.12.2012 (Consolidated)

Date of Incorporation :	06.09.1976

Com. Reg. No.:	1010010813, Riyadh

Legal Form :	Joint Stock Company

Line of Business :	Engaged in the manufacture of basic chemicals, intermediates, polymers, fertilizers and metals.

No. of Employees :	16,000

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Saudi Arabia

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SAUDI ARABIA - ECONOMIC OVERVIEW

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 17% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Over 5 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia's first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in 2005. The government has begun establishing six "economic cities" in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010 and 2014 on social development and infrastructure projects to advance Saudi Arabia''s economic development.

Source : CIA

SUMMARY

Company Name : SAUDI BASIC INDUSTRIES CORPORATION (SABIC)

Country of Origin : Saudi Arabia

Legal Form : Joint Stock Company

Registration Date : 6^th September 1976

Commercial Registration Number : 1010010813, Riyadh

Membership Number : 70000

Issued Capital : SR 30,000,000,000

Paid up Capital : SR 30,000,000,000

Total Workforce : 16,000

Activities : Manufacture of basic chemicals, intermediates, polymers, fertilizers and

metals

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Mohamed Nasser Al Ghamdi, Administration Manager

COMPANY NAME

SAUDI BASIC INDUSTRIES CORPORATION (SABIC)

ADDRESS

Registered & Physical Address

Location : Sabic Complex, Exit 8, North Ring Road

Street : Sitteen Street

Area : Al Maather District

PO Box : 5101 & 59090 & 42503

Town : Riyadh 11525

Country : Saudi Arabia

Telephone : (966-1) 4012033 / 4069900 / 2258000

Facsimile : (966-1) 4012045 / 4013831 / 2259000

Email : info@sabic.com / dalaanas@sabic.com / ghamdinm@sabic.com

Premises

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Riyadh.

Branch Office (s)

Location Description

· PO Box: 10040 & 11115 Factory premises

Jubail Industrial City

Al Jubail 31961

Tel: (966-3) 3477200 / 3595155 / 3452567

Fax: (966-3) 3411552 / 3595394 / 3452996

· PO Box: 30382 Factory premises

Yanbu

Tel: (966-4) 3211660

Fax: (966-4) 3211754

· PO Box: 2629 Factory premises

Dammam 31461

Tel: (966-3) 8575000

Fax: (966-3) 8578075

· PO Box: 5027 Office premises

Al Qassim

Tel: (966-6) 3220866

Fax: (966-6) 3220376

· PO Box: 30204 Office premises

Jeddah 21477

Tel: (966-2) 6352802

Fax: (966-2) 6362561

KEY PRINCIPALS

Name Position

· HH Prince Saud Bin Thunayan Al Saud Chairman

· Mohamed Bin Mohamed Al Mady Vice Chairman & Chief Executive Officer

· Dr Abdulrahman Abdullah Al Humaidi Director

· Bander Abdulaziz Al Wael Director

· Abdullah Abdulrahman Al Homoodi Director

· Mohamed S Abanumay Director

· Abdullah M Al Issa Director

· Abdullah Nojaidi Manager – Petrochemicals

· Abdulrahman Al Ubaid Manager – Polyolefins

· Fahad Al Sheaibi Manager – PVC / Polyester

· Khaled Al Mana Manager – Intermediate Chemicals

· Mohammad Al Jaber Manager – Metals

· Nasser Al Sayyari Manager – Fertilisers

· Yousef Al Zamel Manager – Basic Chemicals

· Ibrahim Al Shuweir Manager – Research & Technology

· Homood Al Tuwaijri Manager – Finance

· Mohammad Al Bat'hi Manager – Human Resources

· M S Humaid Senior Planning Manager

· Abdulrahman Al Dalaan Procurement Manager

· Mohamed Nasser Al Ghamdi Administration Manager

· Naveed Sheikh Fareed Company Secretary

LEGAL FORM & OWNERS

Date of Establishment : 13/9/1396 Hijri (corresponding to 6^th September 1976)

Legal Form : Joint Stock Company

Commercial Reg. No. : 1010010813, Riyadh

Membership No. : 70000

Issued Capital : SR 30,000,000,000

Paid up Capital : SR 30,000,000,000

Name of Shareholder (s) Percentage

· Government of Saudi Arabia 70%

· Local businessmen and private investors 30%

AFFILIATED COMPANIES

Name Shareholding %

Arabian Petrochemical Company and subsidiary (Petrokemya) 100.00

Saudi Iron and Steel Company (Hadeed) 100.00

SABIC Industrial Investments Company and subsidiaries (SIIC) 100.00

SABIC Luxembourg S.à.r.l. and subsidiaries 100.00

SABIC Sukuk Company 100.00

SABIC Industrial Catalyst Company 100.00

Saudi European Petrochemical Company (Ibn Zahr) 80.00

Jubail United Petrochemical Company (United) 75.00

National Chemical Fertilizer Company (Ibn Al-Baytar) 71.50

National Industrial Gases Company (Gas) 70.00

Yanbu National Petrochemical Company 51.95

Saudi Methanol Company (Ar-Razi) 50.00

Al-Jubail Fertilizer Company (Al-Bayroni ) 50.00

Saudi Yanbu Petrochemical Company (Yanpet) 50.00

National Methanol Company (Ibn Sina) 50.00

Saudi Petrochemical Company (Sadaf) 50.00

Eastern Petrochemical Company (Sharq) 50.00

Al-Jubail Petrochemical Company (Kemya) 50.00

Saudi Japanese Acrylonitrile Company 50.00

Arabian Industrial Fiber Company (Ibn Rushd) 47.26

Saudi Arabian Fertilizer Company (Safco) 42.99

Saudi Kayan Petrochemical Company 35.00

OPERATIONS

Activities: Engaged in the manufacture of basic chemicals, intermediates, polymers, fertilizers and metals.

· Basic Chemicals - SABIC’s basic chemicals include methanol, ethylene, propylene, benzene, xylene, MTBE (Methyl Tertiary Butyl Ether), Styrene, CIE (Crude Industrial Ethanol), butadiene and butene-1.

· Intermediates - Intermediates chemicals such as EG, EDC, VCM, 2-EH, Caustic Soda and DOP are ingredients used by the petrochemical industry to manufacture other products. Intermediates chemicals are produced for use by SABIC and for export to industries around the world using basic chemicals as raw materials. The intermediates sector also produces a range of industrial gases - Oxygen, Nitrogen, Argon and Krypton-Xenon.

· Polymers - SABIC is one of the largest exporters of plastics in the world with a production capacity of nearly 4 million tons. They produce three different polyethylenes; polypropylene, PVC and general purpose, high impact and expandable polystyrenes. They produce polyester fibers and filaments, textile grade chips and PET packaging resins and also melamine.

· Fertilizers - SABIC's fertilizer group is dedicated to helping the worldwide agriculture industry produce higher yields of quality crops to feed an ever-growing global population. The range of products includes, ammonia and urea, as well as compound, phosphate and liquid fertilizers. SABIC is now the world's largest exporter of urea. SABIC’s nitrogen, phosphate and compound fertilizers are used in an increasing number of applications to improve food security worldwide. In Saudi Arabia, SABIC fertilizers provide the essential nutrients needed to achieve impressive crop yields from farm acreage that until recently had been arid desert.

· Metals - The Metals Group is a major part of SABIC's diversified manufacturing portfolio in Saudi Arabia. Today, its wholly owned Saudi Iron & Steel Co (Hadeed) affiliate is the leading steel maker in the Gulf region. Since 1983, Hadeed has produced long steel products for the Kingdom's construction industry. Its output now includes flat, hot and cold rolled steel for expanding Saudi and regional engineering and manufacturing industries. The Metals Group also manages large offshore aluminium manufacturing shareholdings in Bahrain, as well as the sales and marketing of ferro-alloys produced in Saudi Arabia.

Sabic Supply Management Organization Ltd is not a separate legal entity. It is a division of the subject that is

responsible for internal issues relating to purchasing, account management and local business development.

Import & Export Countries: Worldwide

Brand Names: SABIC

Operating Trend: Steady

Subject has a workforce of approximately 16,000 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Saudi Riyals (SR’000)

Consolidated Balance Sheet 31/12/12 31/12/11

Consolidated Statement of Income

For the three month For the year ending period ending

31/12/12 31/12/11 31/12/12 31/12/11

Local sources consider subject’s financial condition to be Good.

BANKERS

· National Commercial Bank

Malaz Branch

PO Box: 42536

Riyadh 11551

Tel: (966-1) 4776450

Fax: (966-1) 4769502

· Arab National Bank

King Faisal Street

PO Box: 56921

Riyadh 11564

Tel: (966-1) 4029000

Fax: (966-1) 4027747

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction July 2002 January 2005 April 2008

Credit amount 250,000 397,024 400,000

Amount overdue 0 0 0

Payment terms 60 days 60 days 90 days

Payment Method Letters of Credit Letters of Credit Letters of Credit

Paying record No Complaints No Complaints No Complaints

Currency Canadian Dollars Canadian Dollars Euros

GENERAL COMMENTS

Established in 1976, SABIC is widely regarded as the largest manufacturing company in the Middle East and is engaged in the manufacture of basic chemicals, intermediates, polymers, fertilizers and metals.

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.59
UK Pound	1	Rs.101.55
Euro	1	Rs.84.15

INFORMATION DETAILS

Report Prepared by :

NLM

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.