US$1 bln project finance agreement completed for RusVinyl PVC plant

Russian petrochemical company Sibur and its joint venture partner Belgium-based SolVin (part of Solvay), have completed a €750 mln (US$1.06 bln) project financing agreement to build one of Europe's largest integrated polyvinyl chloride plants in Russia, as per Platts. Production capacity will be 235,000 tpa of caustic soda and 330,000 tpa of PVC; with the flexibility to further increase capacity up to 500,000 tpa by 2016. This 12.5 year financing has been provided by a group of financial institutions including HSBC, ING Bank, BNP Paribas, Sberbank and The European Bank for Reconstruction and Development. RusVinyl is a 50:50 joint venture between Sibur and SolVin. The agreement consists of a Ruble equivalent of €50 mln 11-year loan from Sberbank of Russia, a €150 mln 11 year loan from EBRD and a €450 mln 12 year loan split between BNP Paribas, ING Bank NV and HSBC and guaranteed by COFACE and ONDD, the Export Credit Agencies of France and Belgium. Construction of the plant at Kstovo in the Nizhny Novgorod region is already under way and commissioning is expected in 2013. The plant will produce a range of PVC not currently produced in Russia utilizing technology licensed from Solvay.
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