MOSCOW (MRC) -- A consortium of investors, comprising the Russian Direct Investment Fund (RDIF) and leading Middle Eastern sovereign wealth funds have invested in SIBUR’s ZapSibNeftekhim project - an integrated petrochemical complex in Tobolsk, Tyumen Region (Russia), said SIBUR on its site.
On December 4, ZapSibNeftekhim completed the placement of 15 year bonds worth USD1.75 billion on behalf of the Ministry of Finance of the Russian Federation for investing in this project. The bonds were placed to attract financing from Russia’s National Welfare Fund (NWF) as part of RDIF’s quota (10%) from NWF, which is allocated for the implementation of infrastructure projects.
Total investment in the project amounts to USD9.5 billion. In addition to funds raised in the form of debt financing from the NWF, up to USD3.3 billion are being provided by commercial banks, RDIF and its co-investors. SIBUR is also continuing to fund the facility’s construction at its own expense.
The funds will be used to develop industrial infrastructure for a forthcoming facility, which will process raw hydrocarbon materials into polyolefins. The development of this facility is currently SIBUR’s largest investment project. The project is aimed at deep conversion development of large volumes of Western Siberia’s oil and gas by-products, including associated gas, and the import substitution of highly demanded polymers in the Russian market.
ZapSibNeftekhim will be the largest modern petrochemical facility in Russia. The project includes the construction of a steam cracker with a capacity of 1.5 mtpa of ethylene, about 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF) per year, along with units producing various grades of polyethylene and polypropylene with a total capacity of 2 mtpa per year. The latest advanced technology in the fields of processing raw hydrocarbon materials and logistics will be utilized during the construction and operation of the petrochemical complex in order to ensure the reliability, safety, and efficiency of the project.
As MRC reported earlier, in Marhc 2015, Sibur agreed a credit line for EUR 1.6 bln (USD1.7 bln) with a consortium of European banks. The agreement was signed in December 2014, it added in its financial report for last year. The long-term financing will be used to cover part of capital expenditures related to Sibur's ZapSib-2 investment project.
SIBUR is a 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. SIBUR operates 26 production sites in various regions of Russia. The Group employs 26,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide.
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