OREANDA-NEWS. October 07, 2010. Vnesheconombank’s management team and OJSC Sibur-Holding held a meeting with representatives of the club of foreign banks that participated in syndication as part of implementing the propylene complex construction project in Tobolsk on October 5, 2010.

OJSC SIBUR Holding is the initiator of the project aimed at constructing a propylene complex with a capacity 500 thousand tons per year. SIBUR Holding is the largest petrochemical Russian company. The project is being implemented by LLC Tobolsk-Polymer, the 100%-owned subsidiary of SIBUR.

Vnesheconombank acts as the project’s principal creditor. The project’s total value is estimated at 2 billion US dollars. And OJSC SIBUR Holding’s financing share through using its own funds is 559 US dollars, with 1.441 billion US dollars being the credit resources raised by Vnesheconombank. In order to secure optimal price parameters ad maximum repayment periods under credits, the transaction was funded through raising credit resources of the largest foreign banks and banks for development.

A press conference for Russian and foreign journalists was held as part of the meeting.

A basic credit agreement for a total amount of 1.441 billion US dollars between Vnesheconombank and the club of foreign banks comprised of Credit Agricole Corporate and Investment Bank (France), Deutsche Bank AG (Germany), Intesa Sanpaolo SPA (Italy), ING Bank N.V. (The Netherlands), Societe Generale Corporate and Investment Banking (France), KFW IPEX-Bank GMBH (Germany) and Sumitomo Mitsui Banking Corporation Europe Limited (Japan) was concluded in January of 2010. Under this credit agreement between Vnesheconombank and the club of foreign banks, the first individual agreement worth 533.8 million US dollars was signed to finance a contract of Tobolsk-Polymer with German company Linde-KCA-Dresden against insurance coverage of Euler Hermes GmbH. Under the agreement credit resources are raised for a total period of 13 years. The second individual agreement between Vnesheconombank and the club of foreign investors worth 686.2 million was signed in order to finance LLC Tobolsk-Polymer’s contract with the engineering company Technimont S.p.A. Under the basic agreement two more commercial agreements were signed for a total amount of 221 million US dollars to finance expenses on the project.