Energy

Russia's Amur Gas Chemical Complex secures $9.1 bln in loans

2 minute read

A car drives in front of facilities of Amur gas processing plant under construction, part of Gazprom's Power Of Siberia project outside the far eastern town of Svobodny, in Amur region, Russia November 29, 2019. REUTERS/Maxim Shemetov.

Register now for FREE unlimited access to Reuters.com

MOSCOW, Dec 8 (Reuters) - Russia's Amur Gas Chemical Complex (Amur GCC) has secured $9.1 billion in loans maturing in 2035, Sibur, which co-owns the plant with China's Sinopec, said in a statement on Wednesday.

The launch of the Amur GCC is another step for Sibur, Russia's top petrochemical company, towards becoming a global player, executives have said, with an initial public offering also part of that goal.

International banks will provide $2.6 billion for the Amur GCC with coverage from export credit agencies SACE of Italy and Germany's Euler Hermes, Sibur said, while Chinese and Russian banks will issue the remaining $6.5 billion.

Register now for FREE unlimited access to Reuters.com

State-controlled lender Sberbank (SBER.MM), the country's top bank, said it a separate statement it will issue $700 million of that total, while another Russian bank, Gazprombank, said it will issue a further $750 million.

The two lenders said Russian banks will collectively provide $2.1 billion of the $9.1 billion total.

The Amur GCC is set for launch in 2024 and will produce 2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene a year, processing gas fractions from Gazprom's (GAZP.MM) gas processing plant, which is also called Amur.

China, home of Amur shareholder Sinopec, the world's largest petrochemical company, is the target market for the complex, which is being built in close proximity to the Chinese border in Russia's far east.

Register now for FREE unlimited access to Reuters.com
Reporting by Katya Golubkova; Additional reporting by Maxim Rodionov and Oksana Kobzeva; Editing by Louise Heavens and Jan Harvey

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters