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Japan's JBIC to finance Russian petrochemical project

  • Mercados: Petrochemicals
  • 04/01/22

The state-controlled Japan Bank for International Co-operation (JBIC) will finance Russian firm Irkutsk Oil (INK) to construct ethylene and polyethylene production facilities at Ust-Kut of Irkutsk in east Siberia.

JBIC signed a buyer's credit agreement amounting up to about $522mn with INK on 29 December. The loan is co-financed with Tokyo branches of Deutsche Bank and Société Générale and Goldman Sachs Realty Japan, taking the total funding to $871mn. Nippon Export and Investment Insurance will provide the insurance to the consortium of the private-sector financial firms.

Irkutsk Polymer Plant, a wholly-owned subsidiary of INK, plans to use the funding to buy equipment for the ethylene and polyethylene projects at Ust-Kut, with the main equipment provided by Japan's Toyo Engineering. INK aims to utilise the country's gas resources and to diversify its business for the transition from the pure upstream oil production to the downstream sector such as the production of plastic, JBIC said.


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