BRASKEM IDESA RECEIVES AROUND US$1.5 BILLION FROM THE PROJECT FINANCE STRUCTURE FOR THE PETROCHEMICAL COMPLEX IN MEXICO
São Paulo, August 5, 2013 - Braskem Idesa, the joint venture responsible for the petrochemical complex under construction in Mexico, received in late July a disbursement of approximately US$1.5 billion representing the first installment of the project finance in the total amount of US$3.2 billion. The amounts will ensure continued progress on the construction of the most modern integrated gas-based petrochemical complex for the production of ethylene and polyethylene in the Americas. The payment will also make it possible to reimburse the amounts that were advanced by the joint venture's controlling shareholders.
The transaction was structured by seven anchor institutions consisting of two multilateral agencies (IFC and IDB), two export agencies (EDC - Canada and SACE - Italy) and three development banks (BNDES - Brazil and Bancomext / Nafinsa - Mexico). In addition to the anchor institutions, ten commercial banks also participated in the financing, with the bank Sumitomo acting as exclusive financial advisor on the transaction.
Jointly with Idesa, Braskem is building an integrated petrochemical complex with annual capacity of 1.05 million tons of polyethylene and an equal volume of ethylene feedstock, which is located in the Coatzacoalcos region of the Mexican state of Veracruz. The complex also has strategic value since it will strengthen Mexico's industry by substituting resins that currently are imported. During the construction phase, the project is expected to create 10,000 to 12,000 jobs. With the start of operations, which is scheduled for 2015, some 3,000 direct and indirect jobs will be created.
Braskem Idesa has already begun receiving the first pieces of major equipment. In May, five large tanks (two of which for storing ethane) measuring over 85 meters long and weighing some 550 tons were delivered to the site. Other equipment, such as reactors, silos and boilers, have also already been delivered by suppliers.
POOL OF BANKS INVOLVED IN THE PROJECT FINANCE
· Nacional Financiera (Nafinsa), Mexico
· Banco Nacional de Comercio Exterior (Bancomext), Mexico
· SACE Export Credit Agency (SACE), Italy
· Export Development Canada (EDC), Canada
· Interamerican Development Bank (IDB)
· International Finance Corporation (IFC), World Bank
· Brazilian Development Bank (BNDES), Brazil