29 Jan 2010 19:54

VEB signs syndicated $1.5-bln loan deal for Sibur polymer project

MOSCOW. Jan 29 (Interfax) - Vnesheconombank (VEB) has signed an agreement on a syndicated loan of $1.49 billion for the Tobolsk Polymer project with petrochemicals holding SIBUR, VEB said in a statement.

The syndicate of seven banks includes Calyon, Deutsche Bank AG, Intesa Sanpaolo SPA, ING Bank, Societe Generale, KFW IPEX-Bank and Sumitomo Mitsui Banking Corporation Europe.

It is forecast that $533.8 million of the 1.49 billion will be used to finance a contract for supplying equipment from the German firm Linde-KCA-Dresden GmbH under the insurance coverage of Euler Hermes. VEB signed the necessary individual agreement in the framework of a base loan agreement. The funds ($533.8 million) will be raised over 13 and half years.

At the same time, in the framework of the base agreement, an additional three loan agreements with different periods for raising funds will be signed, a VEB representative told Interfax.

Calyon was the global coordinator and documentary agent of the syndicated loan while Deutsche Bank was the payment agent. The organizers and bookrunners were Calyon, Deutsche Bank AG, Intesa Sanpaolo SPA, ING Bank and Societe Generale. KFW IPEX-Bank and Sumitomo Mitsui also acted as organizers.

Pyotr Fradkov, the bank's deputy chairman, said last week that VEB planned to close the deal soon, he said this would be a 13-year loan and that more than six banks might be involved in the syndication.

The cost of constructing the facility in Tobolsk comes to 65 billion rubles. SIBUR plans to raise $1.441 billion in project financing from VEB. These funds will likely be allocated in various tranches for a term of nine and a half an 12 and half years.

The facility for the production of polypropylene in Tobolsk with annual capacity of 500,000 a year will be built in 2012.