ING Groep NV and Royal Bank of Scotland Group Plc approached lenders for loans totaling US$1.56 billion ($2.08 billion) to help fund construction of Singapore’s Jurong Aromatics petrochemicals project, according to ING.

“The timing seems perfect now with almost no other deals of this size or quality expected in the market this year,” Bruce Macfarlane, head of the advisory team at joint coordinating bank ING, said in an e-mailed statement today.

 

The financing package comprises a US$620 million covered loan with a maturity of up to 15.5 years; US$620 million in loans with tenors of up to 15.5 years from Export-Import Bank of Korea; a US$155 million 10-year loan; a US$50 million loan maturing in up to 15.5 years; and a US$115 million five-year working capital facility, the statement said.

 

The US$2.4 billion project is expected to start operations in 2014, according to the statement. While talks over financing started last year, progress was delayed by poor market conditions, according to a person familiar with the matter. Singapore, vying to be the world’s fastest growing economy in 2010, is the world’s third-largest petrochemical refining center, according to the Monetary Authority of Singapore.

 

Banks invited to join the lending group are expected to pledge financial commitments of between US$75 million to US$150 million by next month, the statement said. The loan is expected to be signed by early December.

 

The project is owned by South Korea’s SK Group, Chinese polyester-maker Jiangsu Sanfangxiang Group Co. and Swiss commodities supplier Glencore International AG, along with other investors, the statement said. BP Plc will also provide a subordinated debt facility, the statement said.