RUSSIA: Sibur receives financial investment for Its ZapSibNeftekhim PC complex

A consortium of investors, comprised of the Russian Direct Investment Fund (RDIF) and Middle Eastern sovereign wealth funds, have invested in Sibur's USD 9.5-billion ZapSibNeftekhim integrated petrochemical complex in Tobolsk, Tyumen Region, Russia.

ZapSibNeftekhim has completed the placement of 15-year bonds worth USD 1.75-billion on behalf of Russia's Ministry of Finance for investing in the project, Sibur explained. "The bonds were placed to attract financing from Russia's National Welfare Fund (NWF) as part of RDIF's 10% quota from NWF, which is allocated for the implementation of infrastructure projects."

In addition to funds raised through debt financing from the NWF, up to USD 3.3-billion is being provided by banks, RDIF and its co-investors. Sibur is also contributing to the cost of the project with its own funds.

The project, described as "Sibur's largest investment project" and the "largest modern petrochemical facility in Russia," involves a steam cracker with the capacity to produce 1.5-million t/y of ethylene, 500,000 t/y of propylene and 100,000 t/y of butane/butylene fraction, and downstream polyethylene and polypropylene facilities with a combined total capacity of 2-million t/y.

Source: Weekly "PetroChemical News", Durham, NC, USA; 14 Dec 2015
(Syed Rashid Ali, Karachi, Pakistan)