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VEB/Sibur – ECA financing
02 March 2011
Setting a template for Russian projects
The VEB/Sibur transaction is a first for the Russian market in terms of financial modelling. The $1.441 billion back-to-back borrowing places Russian development bank Vnesheconombank (VEB) in between the lenders and the ultimate borrower, with VEB as borrower of a combined ECA/commercial bank package, which is then on-lent to the Sibur-backed special purpose project company Tobolsk Polymer. The deal has a number of important ‘firsts’ in financing projects in Russia.
Crédit Agricole CIB, Deutsche Bank, ING Commercial Banking, Intesa Sanpaolo and Société Générale CIB are the initial mandated lead arrangers and bookrunners, with KfW IPEX-Bank and SMBCE joining as mandated lead arrangers.
The ECA- backed tranches comprise of a $533.8 million tranche backed by German export credit agency Euler Hermes signed in January 2010. This tranche finances a commercial contract between Tobolsk-Polymer and Germany’s Linde-KCA-Dresden. The Euler Hermes-backed tranche, provided through VEB, is the largest Euler Hermes-covered bank-to-bank loan globally....
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