05 November 2011 23:51 [Source: ICIS news]
BUENOS AIRES (ICIS)--Brazil-Mexico joint venture Braskem Idesa expects to secure a financing package for its Ethylene XXI project in Mexico by the first quarter of 2012, the chief executive of Idesa said on Saturday.
“We’ve seen volatile financial markets lately, but the financial community is looking favourably on this project,” said Jose Luis Uriegas, CEO of Mexico-based petrochemical firm Idesa, on the sidelines of the 31st annual Latin American Petrochemical Association (APLA) meeting.
Institutions that could be involved in the financing include the World Bank’s International Finance Corp (IFC), Latin America-based Inter-American Development Bank (IDB) and Mexico’s Bancomext, said Uriegas.
“Ethylene XXI is particularly important, as it is a bi-national project,” he added.
Braskem Idesa, which is 65% owned by Brazil-based petrochemical company Braskem, and 35% by Idesa, is seeking to finance 70% of the total cost of the project, with the remaining 30% equity financed by Braskem Idesa, said Uriegas.
As of the latest update in 2010, the Ethylene XXI project was estimated to cost $3.6bn (€2.6bn). A new estimate is due within a month, he noted.
APLA ends on Tuesday.
($1 = €0.73)
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