Abu Dhabi, April 10 2007 – Shearman & Sterling LLP has continued to demonstrate its strong market position in 2007 by advising on another high profile transaction in the Middle East.

A team led by partner Tim Pick has advised the Mandated Lead Arrangers on the US $411.1 million financing for the National Petrochemical Industrial Company’s (J.S.C.) (NatPet) project in Saudi Arabia which reached financial close on 4 April. The project will consist of the construction and operation of a 400,000 tonnes per annum propylene and polypropylene manufacturing complex with associated facilities and utilities located in the rapidly expanding industrial area of Madinat Yanbu Al-Sinayah in the Kingdom of Saudi Arabia.

The financing was structured to integrate with parallel secured funding provided by the Saudi Industrial Development Fund (SIDF). It is anticipated that additional government funding will be secured from Public Investment Fund (PIF).

Tim Pick commented: "Saudi Arabia is a challenging environment in which to successfully structure and close project financings, and requires a creative and flexible approach to even the most basic issues. This kind of privately-sponsored entrepreneurial project development is many times removed from the paradigmatic government-backed transactions common in the region.”

The Shearman & Sterling team included associates Nicole Clouthier, Paul Bailey and Fred Holc assisted by Lazonia Clark in Abu Dhabi and John Delamere in London. Associates from Shearman & Sterling offices in Frankfurt (Oliver Rust), Rome (Marzio Ciani) and New York (Mark Perry) also assisted on the deal.

The Mandated Lead Arrangers comprise Banque Saudi Fransi, Arab Banking Corporation B.S.C., Abu Dhabi Commercial Bank, BNP Paribas, Samba Financial Group, Saudi Hollandi Bank and The National Commercial Bank.