Russia's Sibur secures funding for 330,000 tonne/year PVC project

17 June 2011 12:19  [Source: ICIS news]

(recasts, clarifying currency basis of EBRD loan in third paragraph)

MOSCOW (ICIS)--Sibur has completed a series of loan agreements worth €750m ($1.06bn) to finance construction of a new 330,000 tonne/year PVC plant, the Russian petrochemical holding company said on Friday. 

The financing was provided to RusVinyl, a joint venture between Sibur and SolVin, by HSBC, ING Bank, BNP Paribas, Russia's Sberbank and the European Bank for Reconstruction and Development (EBRD), Sibur said in a statement.

The agreement consists of a rouble (Rb) equivalent of €150m, 11-year loan from Sberbank, a rouble equivalent of €150m 11-year loan from EBRD and a €450m 12-year loan from BNP Paribas, ING Bank and HSBC, the statement said.

"We are delighted to have agreed project financing terms with a range of international banks for the unique transaction of its kind in Russia," Sibur CFO Alex Filippovsky said.

"The project is in line with our longer term strategic development plans as we exploit higher growth, higher margin segments of the market," he said.

The new PVC plant will have capacities of 330,000 tonnes/year of PVC and 235,000 tonnes/year of caustic soda.

It is being built in Kstovo, Nizhny Novgorod region, central Russia, where Sibur operates the existing Kstovo Petrochemical Plant. Technip is providing the design, procurement and construction management services.

In June 2007, Sibur formed a joint venture, RusVinyl LLC, to build the Kstovo PVC plant. RusVinyl is owned on parity basis by Sibur and SolVin, in which Solvay owns 75% and BASF has 25%.

The new plant was previously expected on stream in 2010 but now it is due to be completed in 2013.

($1 = €0.71)

For more on Sibur visit ICIS company intelligence

By: Sergei Blagov
+44 20 8652 3214

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