Borealis to raise €200m to support Mideast, Europe projects

21 April 2010 16:39  [Source: ICIS news]

TORONTO (ICIS news)--Borealis seeks to raise up to €200m ($270m) in a bond issue this month to help finance projects in the Middle East and Europe, the Austria-based polyolefins major said on Wednesday.

The seven-year bond – Borealis’ first such corporate bond transaction – would be placed with Austrian private and institutional investors, it said. Austrian banks Erste Group and UniCredit Bank Austria would act as the issue’s lead managers, it added.

The bond's tentative coupon rate was 5.5% per year and its expected value date was 30 April, Borealis said.

The final coupon rate and issue price would be determined shortly before the subscription period started and would depend on the capital market situation, it added.

Erste said it expected Borealis' bond to meet with very strong demand from private investors, partly due to a lack of alternative investing opportunties.

Borealis said its petrochemicals joint venture in Abu Dhabi, Borouge, was currently tripling production capacity to 2m tonnes/year of polyethylene (PE) and polypropylene (PP), with the start-up planned for the middle of the year.

An additional 2.5m tonne/year expansion was scheduled for 2014, it added.

In related news on Wednesday, a Borouge executive earlier told ICIS news in an interview that his firm saw the polyolefins outlook as "very positive in the long term", although there could variations in the short run.

Borealis is 64%-owned by Abu Dhabi’s International Petroleum Investment Co (IPIC), with Austria’s oil and petrochemicals major OMV owning the remaining 36%.

($1 = €0.74)

For more on Borealis and other producers, visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index