Braskem Idesa successfully signs the US$ 3.2 billion financing for its Etileno XXI Project in Mexico

12/20/2012 10:10

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The largest Project Finance transaction in the history of the petrochemical industry in the Americas

? Institutions that participated in the financing: Nacional Financiera from Mexico ("NAFIN"), Banco Nacional de Comercio Exterior from Mexico ("BANCOMEXT"), Banco Nacional de Desenvolvimiento Econômico e Social from Brazil ("BNDES"), Italy´s export credit agency SACE , Export Development Canada ("EDC"), the Inter-American Development Bank ("IDB"), International Finance Corporation ("IFC") of the World Bank, and ten commercial banks; Sumitomo Mitsui Banking Corporation ("SMBC") acted as sole financial advisor and White & Case acted as international and Mexican legal advisor for Braskem Idesa.
? The project will be the most modern petrochemical plant in the Americas and is expected to create 9,000 jobs during the construction phase and 3,000 direct and indirect jobs when operations begin in 2015.
? The plant will produce polyethylene to supply Mexican companies and will support import substitution.

Mexico City-December 19 2012- Braskem Idesa announces the successful signing of the
principal financing documents for the US$ 3.2 billion Project Financing that will fund the
construction and operation of a major petrochemical complex, which will be the most modern in
the Americas. This landmark financing was structured by seven official Agencies which include two Export Agencies of Canada and Italy, two Multilateral Agencies (IFC and IADB), and three
Development Banks of Brazil and Mexico. Ten commercial banks will fund either under the
guarantee of SACE or under B-loans of IFC and IDB. Intesa Sanpaolo acts as Agent of the US $ 600 million SACE Facility. Distribution of funds is detailed below:

 

Institution

US$ (million)

 

Type

 

BNDES

 

 

623

 

 

Direct Loan

 

 

Nafin

 

 

280

 

 

Direct Loan

 

 

Bancomext

 

 

120

 

 

Direct Loan

 

 

EDC

 

 

300

 

 

Direct Loan

 

 

IFC

 

 

285

 

 

A Loan

 

 

IDB

 

 

285

 

 

A Loan

 

 

SMBC

 

 

200

 

 

IFC&IDB- B Loan and SACE Guaranteed

 

 

HSBC

 

 

200

 

 

IFC&IDB- B Loan and SACE Guaranteed

 

 

KfW

 

 

150

 

 

SACE Guaranteed

 

 

Banco do Brasil

 

 

140

 

 

IFC&IDB- B Loan

 

 

BTMU

 

 

140

 

 

IFC&IDB- B Loan

 

 

KDB

 

 

140

 

 

IFC&IDB- B Loan

 

 

BBVA

 

 

100

 

 

SACE Guaranteed

 

 

Intesa Sanpaolo

 

 

100

 

 

SACE Guaranteed

 

 

Santander

 

 

100

 

 

SACE Guaranteed

 

 

Mizuho

 

 

30

 

 

SACE Guaranteed

 

 

TOTAL

 

3,193

 

Sumitomo Mitsui Banking Corporation acted as sole Financial Advisor and White & Case served as International and Mexican Legal Counsel for Braskem Idesa.
Founded in 2010, Braskem Idesa SAPI is a joint venture, formed by the Brazilian Braskem S.A., the largest producer of thermoplastic resins in the Americas, and Grupo Idesa, a leading Mexican petrochemical company. Braskem Idesa is developing the Etileno XXI project, a petrochemical complex for the production of ethylene and polyethylene in the state of Veracruz, Mexico (Municipality of Nanchital). This project is expected to require a fixed investment of US$ 3.2 billion (CAPEX) and a total investment of approximately US$ 4.5 billion.
Once operating at its planned capacity of one million tons of high and low density polyethylene per year, Braskem Idesa is expected to be a driver for economic growth in Mexico's southeast region.
The site preparation and the first phase of construction that began in October 2011 have been completed. As of November of this year the second phase began, consisting of detailed engineering, equipment procurement and civil and electromechanical construction which is expected to be concluded in the first half of 2015.
Located in a strategic area with high potential for new oil and gas reserves, Braskem Idesa's complex is expected to impact the Mexican balance of payments by replacing US$ 1.5 to US$ 2 billion of polyethylene imports used in various commercial and industrial transformation processes.

About Braskem Idesa S.A.P.I
Founded in 2010, Braskem Idesa is a petrochemical company that is developing the Etileno XXI Project which is expected to begin operations in the first half of 2015. The petrochemical complex will produce polyethylene, a feedstock for the construction, consumer, automotive and agricultural industries.