October 1, 2020
For Immediate Release
Company Name:
Representative:

Securities Code:
Stock Exchange Listings:
Inquiries:

Sumitomo Chemical Co., Ltd.
Keiichi Iwata
President and Representative
Director4005
First Section of the Tokyo StockExchange
Toshihiro Yamauchi
General Manager
Corporate Communications Dept.
(Tel: +81-3-5543-5102)

Termination of Completion Guarantee for Rabigh Phase 2 Project Financing

Sumitomo Chemical and Saudi Arabian Oil Company (Saudi Aramco) have each provided a financial
guarantee for 50% of the amount financed through project financing for the expansion plan of theexisting integrated refinery and petrochemicals complex (Rabigh Phase 2 Project) through its
completion. This project has been undertaken by Rabigh Refining and Petrochemical Company(Petro Rabigh), jointly founded by both companies.
This is to announce that the financial completion guarantee will be terminated as of September 30,
2020, as we have confirmed our fulfillment of specific requirements for continuous performance anddebt-repayment ability stipulated in the project financing agreements, after consultation with asyndicate of banks.
A financial completion guarantee is an arrangement whereby investing companies for a given projectguarantee a full repayment of the loan to a lender on behalf of the project company during
construction and for a specified period after the completion of the construction work, until
confirmation is made that the project company is deemed capable of making repayment withcontinuous cash flow generated by stable operations.
In March 2015, Petro Rabigh signed project financing agreements with a syndicate of banks,
including the Japan Bank for International Cooperation (JBIC) and the Public Investment Fund(PIF) of Saudi Arabia, to receive an aggregate loan of US$5.2 billion, which was 60% of the total costof Rabigh Phase 2 Project (about US$9.1 billion). For these agreements, Sumitomo Chemical andSaudi Aramco have each offered a financial completion guarantee for 50% of US$5.2 billion based on
the agreements with the syndicate of banks.

Petro Rabigh has already started the scheduled repayment of the debt principal since June 2019
(outstanding debt as of September 2020 is about US$4.6 billion). The company will continue to repay
the balance of the loan out of cash flow generated from its operating activities.
Meanwhile, the market environment has rapidly deteriorated since the end of last year. Coupledwith other factors including periodic shutdown maintenance, Petro Rabigh faced the shortfall ofworking capital. To cover this shortfall, Sumitomo Chemical and Saudi Aramco have decided to makea loan totaling US$2 billion (of which Sumitomo Chemical's portion is US$750 million, 37.5% of theownership stake) to Petro Rabigh.
Sumitomo Chemical continues to provide necessary support so that Petro Rabigh can continue stable
operation to achieve sustained growth.

Company Profile of Petro RabighCompany Name:

Rabigh Refining & Petrochemical Company

Location:

Rabigh, the Kingdom of Saudi Arabia

Establishment:

September 19, 2005

President & CEO:

Nasser D. Al-Mahasher

Capital:SAR 8,760 million (as of October 1, 2020)

Shareholding Ratio:

Sumitomo Chemical 37.5%, Saudi Aramco 37.5%,
Saudi Arabian public investors 25%

Major Business:

Manufacture and sale of refined petroleum products and petrochemicals

Number of Employees:

3,637 (as of December 31, 2019)