Petro Rabigh finalizes 2nd waiver of revolving shareholder loans worth SAR 1.87B

Logo of Rabigh Refining and Petrochemical Co. (Petro Rabigh)

Rabigh Refining and Petrochemical Co. (Petro Rabigh) announced the completion of the second waiver of revolving shareholder loans (RSLs), as it entered into the amended and restated RSL termination agreements with its founding shareholders, Saudi Aramco and Sumitomo Chemical Co. which were announced previously.

In a statement to Tadawul, Petro Rabigh said that, under the agreements, the founding shareholders irrevocably and unconditionally waived the company’s obligation to repay an amount of $500 million (SAR 1.87 billion) under the RSLs (representing $250 million (SAR 937.5 million) for each founding Shareholder under its respective agreement) (the “Second Waiver”).

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Pursuant to the terms of the agreements, Petro Rabigh and the founding shareholders further agreed to terminate the RSLs and all obligations pursuant to it.

According to the company, the second waiver is expected to have a positive impact on its financial position, which will be reflected in financial Statements for Q1 2025.

With the completion of the first and second waivers, the founding shareholders have now irrevocably and unconditionally waived the entire balance under the RSLs and the company’s obligations pursuant to the RSLs have terminated.

Petro Rabigh also noted that the agreements are related party transactions, given that both founding shareholders are substantial shareholders in it, each owning about 37.5% of its shares.

It stressed that the agreements further demonstrate the ongoing support by the founding shareholders to improve its financial position and facilitate its turnaround strategy.

According to data available with Argaam, Petro Rabigh signed, on Aug. 28, 2024 modified agreements on RSLs provided by its founding shareholders, Saudi Aramco and Sumitomo Chemical Co., which were previously announced by Petro Rabigh on Oct. 1, 2020.