Today, within the framework of Saint Petersburg International Economic Forum, Russia’s main platform for international economic cooperation, RusVinyl LLC signed a multifacility loan agreement for an amount of €750 million for a period of up to 12,5 years to finance the construction of Russia’s biggest integrated polyvinyl chloride (PVC) plant with capacities of 330 kt/y in Kstovo, Nizhny Novgorod region.
The Financing will be provided by a club of banks, representing leading global financial institutions, such as Sberbank of Russia, European Bank for Reconstruction and Development, BNP Paribas, ING Bank N.V. and HSBC.
The signed agreement consists of a €150 million loan from Sberbank of Russia, a €150 million loan from EBRD and €450 million split between BNP Paribas, ING Bank N.V. and HSBC and guaranteed by COFACE and ONDD, the Export Credit Agencies of France and Belgium. The Export Credit Agencies will provide insurance cover on the financing of equipment, license and service purchases from the French and Belgian companies, RusVinyl’s project partners. The Parties also acknowledged the finalization of a set of other agreements related to this financing. They are now working towards getting the first drawdown of the project financing available around the end of the third quarter 2011.
Belgian Prime Minister Yves Leterme formally opened the signing ceremony which was also attended by Elvira Nabiullina, Minister of Economic Development of the Russian Federation, Leonid Mikhelson, Chairman of the Board of Directors of SIBUR, Christian Jourquin, CEO of Solvay S.A., Dmitry Konov, SIBUR President, Jacques van Rijckevorsel, Chairman of the Supervisory Board of SolVin, Jean-Louis Plumecocq, RusVinyl General Director, Thomas Mirow, EBRD President, Andrey Donskih, Deputy Chairman of the Board of Sberbank, as well as top-managers of BNP Paribas, HSBC and ING Bank N.V.
Construction work on RusVinyl LLC’s PVC plant is actively under way with piling and concrete laying nearing completion and large-size equipment is being prepared for delivery to the construction site.
Commercial commissioning of the complex is projected for 2013. The plant production capacities will be 330 kilotons of polyvinyl chloride (PVC) and 235 kilotons of caustic soda per year. In order to serve the continuous increase of PVC consumption in the Russian Federation capacity could be extended up to 500 kilotons of PVC per year in 2016, depending on the possibility of developing sufficient salt deposits in the Nizhny Novgorod region.
RusVinyl will use one of the best PVC production technologies in the world, the licensor of which is the international Vinyls producer SolVin. The Service Provider for design, procurement and construction management is Technip, the international engineering group. The General contractor for construction is OJSC «Globalstroy-Engineering», one of the largest Russian companies, providing engineering, procurement and construction services to the oil and gas industry in Russia and the CIS.
Oxygen, nitrogen and dry compressed air for PVC production will be supplied by French group of companies Air Liquide currently building an air separation plant at RusVinyl construction site. German logistic company Karl Schmidt will build a logistic platform of the PVC plant.
The PVC plant will be constructed using state-of-art European technologies ensuring production of a necessary range of high quality PVC suspension and emulsion (S-PVC and E-PVC) with low production costs as well as compliance with Russian environmental requirements. The project is oriented to produce a unique range of PVC resins not currently offered on the Russian market and will considerably decrease imports of this polymer.
The present Project cost totals RUR 48 billion. RusVinyl’s is the only project of such scale and importance in Russia’s chemical and petrochemical industry to be implemented with the participation of a foreign industrial company.
Due to its large scale and innovative character the Project was given Priority Status by the Nizhny Novgorod regional government and has been incorporated into the long-term State Program-2015 for the strategic development of petrochemical industry by Russia’s Ministry of Industry and Trade. It is also one of the key investments projects included in the State Plan for development of the oil and petrochemical industries of the Russian Federation until 2030.
RusVinyl finalizes the EUR750 million project