Sadara Chemical Company (“Sadara”) announced today the launch of the public offering of Sukuk certificates (the "Sukuk") following the approval by the Capital Market Authority (“CMA”) of the Kingdom of Saudi Arabia (the “Kingdom”). The Sukuk will be issued by Sadara Basic Services Company ("SBSC"), a joint stock company with commercial registration number 2055018374, primarily established for the purpose of issuing the Sukuk on behalf of Sadara. The total offering size and value will be determined at a later stage by Sadara.

The proceeds of the Sukuk issuance will be used to provide finance for the construction and delivery of a part of the Sadara complex located in Jubail Industrial City II in the Eastern Province of the Kingdom, which will be the world’s largest chemical complex ever built in a single phase.

The CMA approved the Sukuk on 1/5/1434H (corresponding to 13/3/2013G) and the Sukuk prospectus (the “Prospectus”) will be published on 4/5/1434H (corresponding to 16/3/2013G). The Shari’a structure of the Sukuk has been approved by the joint Shari’a committee formed by Alinma Investment Company (“Alinma”) and AlBilad Investment Company (“AlBilad”), and the Shari'a committees of Deutsche Securities Saudi Arabia L.L.C. (“Deutsche Bank”) and Riyad Capital.

The offering, sale and delivery of the Sukuk is limited solely to Saudi nationals and those other legal persons with a permanent establishment in the Kingdom holding a current commercial registration number issued by the Ministry of Commerce and Industry, and maintaining a bank account in the Kingdom.

The Sukuk will be a floating rate Sukuk, with a tenor of approximately sixteen (16) years. The investors will receive an expected return of six (6) month SAIBOR plus a margin per annum to be distributed semi-annually.

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 Kingdom’s Eastern Province. Once complete, 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.

Sadara has appointed Deutsche Bank, AlBilad, Alinma and Riyad Capital as joint lead managers and joint book runners. The joint lead managers and joint book runners appointed Milbank, Tweed, Hadley & McCloy LLP and Zeyad Khoshaim Law Firm in association with Allen & Overy LLP as their legal advisors. Sadara and SBSC appointed Hatem Abbas Ghazzawi & Co. and Dr. Waleed N. Al-Nuwaiser in association with White & Case LLP as their legal advisors.

More details on the Sukuk, including the Prospectus, will be 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). printed copies of the prospectus will be available at the offices of sbsc, sadara, the saudi stock exchange (tadawul) and each of the joint lead managers and joint book runners, at the addresses specified below

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

The CMA 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.

Media Contact:
Mayasa Abu Al-Saud
+966-3813-5999 ext 1163
E-mail: Mayasa.abualsaud@sadara.com