Washington, D.C. / Mexico City, December
20, 2012—IFC, a member of the World Bank Group, is providing $285
million and mobilizing an additional $350 million for Braskem Idesa S.A.P.I.
to construct and operate Etileno XXI, a greenfield petrochemical plant
that will be located in the Mexican state of Veracruz.
Etileno is the largest project-finance transaction in the history of the
petrochemical industry in the Americas, and Mexico’s first major private
sector petrochemicals project in more than 20 years. It will help improve
Mexico’s global competitiveness in the industry, and is expected to create
9,000 jobs during the construction phase as well as 3,000 direct and indirect
jobs when operations begin in 2015.
IFC is one of seven financial institutions acting as Anchor Agency Mandated
Lenders to the Etileno XXI project, contributing with $ 3.2 billion in
project financing. The seven entities, in addition to IFC, are Banco Nacional
de Comercio Exterior from Mexico (Bancomext), Nacional Financiera from
Mexico (Nafinsa), Banco Nacional de Desenvolvimiento Econômico e Social
(BNDES), Export Development Canada (EDC), the Inter-American Development
Bank (IDB), and Italy’s Export Credit Agency (SACE). The total project
cost is $4.5 billion.
IFC’s long-term financing includes a 16-year, $285-million loan for its
own account, and a 14-year, $350-million loan provided by a syndicate of
5 Mandated Lead Arrangers comprised of Banco do Brasil, Bank of Tokyo-Mitsubishi,
HSBC, Korea Development Bank, and Sumitomo Mitsui Banking Corporation.
Founded in 2010, Braskem Idesa S.A.P.I. is a joint venture, formed by the
Brazilian Braskem S.A., the largest producer of thermoplastic resins in
the Americas, and Grupo Idesa,S.A. de C.V., a leading Mexican petrochemical
“IFC is bringing its global expertise in financing the petrochemical sector
worldwide, in addition to its internationally-recognized environmental
and social standards,” said Patricio Gutierrez, Braskem Idesa Finance
Director and CFO. “Its presence, along with the other Anchor Mandated
Lenders, was critical to financing this landmark project in Mexico’s petrochemical
sector, not only for the direct financing provided, but also in helping
to mobilize other sources of funding.”
IFC’s financing will help address the need for investment in Mexico’s
polyethylene and petrochemical industries. Today, over 65 percent of demand
for polyethylene in Mexico is met by imports. Polyethylene is a basic building
block in the modern manufacturing sector. Along with other petrochemicals,
it is used to manufacture pharmaceutical bottles and equipment, food containers,
and pipes and conduits in the construction sector.
“IFC’s support to Etileno XXI is part of our strategy to help improve
the competitiveness of key economic sectors in Mexico, and create jobs,”
said Oscar Chemerinski, IFC’s Director for Manufacturing, Agribusiness
and Services in Latin America and the Caribbean, and Sub-Saharan Africa.
“With this financing, we are also supporting the government of Mexico’s
plan to increase cooperation with the private sector and to attract state-of-the-art
technology and external investments to the natural-resource sector.”
The plant, to be located in municipality of Nanchital, Veracruz, will include
an ethane cracker with a capacity of 1.05 million tons per year of ethylene
as well as three polyethylene plants. Pemex Gas y Petroquímica Básica (PGPB)
will supply the ethane feedstock for the cracker. The plant will allow
Mexico to produce locally more value-added petrochemical products in the
downstream gas supply chain.
IFC’s strategy in Mexico is focused on investment and advisory projects
that help accelerate growth, improve competitiveness, promote social inclusion,
and reduce poverty. Between Fiscal Years 2010 and 2012, IFC invested $1.2
billion in Mexico, including $895 million from its own account and $350
million in mobilization. In 2011 alone, IFC projects in the country supported
over 43,000 jobs, generated power for over 760,000 people, and reached
more than 180,000 patients.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
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.