December 21, 2012
After two years in the making Braskem Idesa has finally closed a $3.2bn loan package for its Etileno XXI project, what it calls the largest-ever project finance deal in the petrochemical sector. The deal is the first time the Mexican and Brazilian development banks have done a financing together and the first time Brazil’s BNDES has used its international line, according to people familiar with the matter. The package includes direct loans of 16.25 years from BNDES ($623m), Nafin ($280m), Bancomext ($120m) and Export Development Canada ($300m). The IFC and Interamerican Development Bank are each lending $285m directly for 16.25 years, and each arranged a $350m 14.25-year B loan that brought in MLAs SMBC, HSBC, Banco do Brasil, Bank of Tokyo Mitsubishi and KDB at $70m each per loan. Finally, Italy’s SACE is guaranteeing a $600m 16.25-year facility, with SMBC and HSBC coming in at $60m each, BBVA, Intesa Sanpaolo and Santander at $100m each and Mizuho at $30m. The company and lenders decline to disclose the interest rates involved. Intesa Sanpaolo is agent on the Sace Facility and SMBC was Braskem Idesa’s financial advisor. White & Case was both international and Mexican counsel. The proceeds will help fund the $4.5bn Etileno XXI ethylene and polyethylene plant in Nanchital, Veracruz, with the remainder coming from equity. The petrochemical complex, built by a joint venture between Braskem and Mexico’s Idesa, has been under construction since October 2011 and should be operational by 2015.
After two years in the making Braskem Idesa has finally closed a $3.2bn loan package for its Etileno XXI project, what it calls the largest-ever project finance deal in the petrochemical sector. The deal is the first time the Mexican and Brazilian development banks have done a financing together and the first time Brazil’s BNDES has used its international line, according to people familiar with the matter. The package includes direct loans of 16.25 years from BNDES ($623m), Nafin ($280m), Bancom