Amur Gas Chemical Complex LLC, hereinafter “AGCC”, has agreed and signed loan documents to finance the completion of AGCC’s construction. AGCC will act as the borrower; SIBUR and Sinopec will be sponsors proportional to their stakes (60/40, respectively) in the joint venture (JV).
Upon completion of standard conditions precedent, AGCC will begin to draw on the loan which will total USD $9.1bn and has a final maturity of 2035. Project costs in excess of USD 9.1bn will be covered by the JV parties pro rata.
The credit facilities are provided by international banks under coverage from Italian (SACE) and German (Euler Hermes) export credit agencies and also from Chinese and Russian banks on a commercial basis. The total amounts of ECA-backed and commercial credit facilities will equal USD 2.6 bn and USD 6.5 bn, respectively.
Peter O'Brien, member of the Management Board and Managing Director for Economics and Finance at SIBUR:
“SIBUR continues to demonstrate proven expertise in raising competitively priced capital for large-scale investment projects. With financing secured, the construction of Amur GCC, one of the world’s largest polymer production facilities, will continue towards completion on schedule. The project is set to contribute much-needed additional supply of polyethylene and polypropylene to global markets to address the needs of modern consumers.”
