Russian petrochemical company SIBUR, in a 50/50 joint venture with SolVin, part of the Belgian Solvay group, signed a Eu750 million ($1.07 billion) project financing for the RusVinyl project on 17 June. The 12.5-year financing, for Europe’s largest integrated polyvinyl chloride (PVC) plant, comes from BNP Paribas, ING Bank, HSBC, Sberbank and the European Bank for Reconstruction and Development.The deal is significant because it is the first time that international banks have been prepared to accept full onshore Russian market risk, though they do benefit from ECA cover. “It was part of the joint operating agreement with SolVin to develop the project using a project financing but the original deal with regional banks was hit by the credit crisis,” says Pavel Ananienko, the head of SIBUR’s treasury department. “It would have been possible to place the entire financing with a single Russian bank, such as Sberbank, but the debt pricing would...
Take a free website trial to read this article. It’s easy to get a trial – just follow this link or email info@projectfinancemagazine.com.
Or, if you’re a subscriber or have an active trial, simply log in below to read the article.
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Subscribe
Free trial
Taking a free trial will give you access to the latest news and analysis, as
well as the online deals database, BenchBase. Start your free trial today.
Free Trial