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Deal analysis: RusVinyl
05 October 2011
Dickon Harris examines how this summer’s novel ECA-backed project financing for Russia’s RusVinyl PVC plant could finally pave the way for onshore petrochemical Russian project financings.
Read more:
RusVinyl
PVC
project finance Russia
Sibur Holding
EBRD
BNP Paribas
HSBC
ING
ONDD
In June, banks signed the a1.3 billion ($1.7 billion) RusVinyl project financing to help build Europe’s largest integrated polyvinyl chloride (PVC) plant. The deal is a 50/50 joint venture between Russian petrochemical company Sibur Holding (Sibur) and venture partner SolVin Holding Nederland, part of the Solvay group.
Partly financed by European export credit agencies, the deal marks the first time that international banks have accepted full onshore market risk for a Russian petrochemical project financing.
With several large producers and a liquid local banking market Russian petrochemical project financings has always appeared to be on the verge of success for the last five years but have yet to really take off.
RusVinyl’s recent success is therefore being closely watched as a key precedent, not just for the Russian petrochemical sector but also for the wider CIS region.
As one deal insider explains: “There has been...
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