MOSCOW (MRC) -- The Russian Agency for export credit and investment insurance (EXIAR) and BIAXPLEN, SIBUR's subsidiary, have entered into a comprehensive export credit insurance agreement, reported SIBUR on its site.
This is SIBUR's the first experience in insuring foreign receivables.
Under the agreement, the EXIAR shall provide insurance of biaxially-oriented polypropylene (BOPP) film supplies for around RUB 2.2bn against the risk of default of European petrochemical buyers. The insurance coverage is valid for one year.
Comprehensive export credit insurance is intended to protect Russian companies against the risk of default of foreign buyers due to commercial or political reasons. The insurance covers supplies of goods under a deferred payment scheme.
We remind that, as MRC wrote previously, SIBUR has recently sold its 100% stake in OJSC Plastik (Uzlovaya, Tula Region, Russia) to the group of private investors. The deal value totalled RUB 575 million. Production of geosynthetics (geogrids and nonwoven geotextiles), spinned off as OOO Plastik-Geosintetika (a joint venture between SIBUR and Leader Innovations Closed-End Venture Capital Fund) in 2010, was not included in the transaction and continues to operate as part of SIBUR Group.
SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.
MRC