INK has obtained a USD 871 million Buyer’s Credit from international banks supporting purchase of equipment for Irkutsk Polymer Plant
The loan is co-financed with Deutsche Bank AG, Tokyo Branch (Facility Agent), Societe Generale, Tokyo Branch, and Goldman Sachs Realty Japan Ltd. This brings the total co-financing amount to USD 871 million. Nippon Export and Investment Insurance (NEXI) will provide the insurance to the consortium of the above mentioned private financial institutions.
The loan will support Japanese companies with exports of equipment and create business opportunities for Japanese companies in the Russian petrochemical sector, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
The loan will help INK’s effort to further streamline its focus on the world’s best ESG Policies. Irkutsk Polymer Plant employs the most advanced and modern technologies and commits to comply with the strictest industry standards, as well as IFC Performance Standards of Environmental and Social Sustainability, and Equator Principles (a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects to be financed). Compliance with ESG regulations will be regularly monitored by an independent environmental and social consultant.
The Japan Bank for International Cooperation (JBIC) is a Japanese policy-based financial institution and export credit agency that was established in 2012. The bank is wholly owned by the Japanese government, it is headquartered in Tokyo and operates in 17 countries with 19 offices. The main purpose of the institution is to “contribute to the sound development of Japan and the international economy and society” by executing a variety of financial functions.
The construction of the polymer plant is performed by Irkutsk Oil Company in Ust-Kut as a part of development of gas-chemical cluster comprising gas production, treatment, transportation and processing facilities. Toyo Engineering, a Japanese engineering company, is involved in the construction of the plant and is responsible for the design and supply of equipment/materials. Gemont is the general contractor for the construction of the polyethylene and ethylene units. The producing capacity of the plant will be over 650 thousand tons of commercial grade polyethylene per year. Engineers and workers from all over Russia, as well as from Japan, Turkey, France, Holland, and the United States work on the construction site.
Irkutsk Oil Company ranks among the largest independent oil producers in Russia. The company was established in 2000. The Company undertakes geological surveys, exploration, and production at 52 subsoil license blocks in Irkutsk Region, Krasnoyarsk Territory, and the Republic of Sakha (Yakutia). The largest recent investment project of Irkutsk Oil Company is the development of the gas and chemical cluster; the site includes gas recovery, preparation, transportation, and processing facilities, a helium plant, and a polymer plant. The company currently employs over 10 thousand employees.
