Brazilian-Mexican consortium Braskem-Idesa has reached a US$3.2 bln financing deal for its Ethylene XXI petrochemical project in Mexico. The accord was signed with 17 state-run and commercial banks from several countries. Sumitomo Mitsui Banking and international law firm White & Case served as Braskem-Idesa’s financial advisor and legal counsel, respectively.
The consortium was created in 2010 as a joint venture between Brazil’s Braskem, the largest manufacturer of thermoplastic resins in the Americas, and Grupo Idesa, a leading Mexican petrochemical producer. Ethylene XXI – which is being built in Nanchital, a town in the Gulf coast state of Veracruz – will be a private petrochemical complex for the production of polyethylene. Scheduled to commence operations 2015, the complex will produce 1 mln tons of polyethylene and replace up to US$2 billion worth of imports.