Deutsche Bank AG supports $871 million credit facility to Irkutsk Oil Company
The bank has entered into an agreement to provide JBIC / NEXI-covered financing to Irkutsk Oil Company (INK) for the construction of a new petrochemicals plant, Irkutsk Polymer Plant, in East Siberia with support from Japanese suppliers.
Deutsche Bank AG, acting as Facility Agent and Lender, together with Japan Bank for International Cooperation (JBIC) as direct lender and a consortium of three commercial banks under Nippon Export and Investment Insurance (NEXI) coverage, today announced an agreement to provide a 13-year, 871 USD million credit facility to Irkutsk Oil Company (INK), a Russian limited liability company.
In addition to Deutsche Bank AG, Tokyo Branch, the commercial banking consortium includes Société Générale, Tokyo Branch, and Goldman Sachs Realty Japan Ltd. alongside JBIC.
The loan is provided to INK, which in turn will lend the funds to Irkutsk Polymer Plant LLC, INK’s wholly owned subsidiary. The purpose of the loan is to support the purchase of equipment from multiple vendors, with the main equipment for both the ethylene and polyethylene production facilities in the city of Ust-Kut, Irkutsk Region in East Siberia to be provided by Toyo Engineering Corporation.
The construction of a new ethylene and polyethylene production plant is the latest component of INK’s larger Gas Project, which initiated a full-scale gas development strategy to fully recover and monetise gas components throughout the entire gas cycling process. INK aims to utilize its sizable gas resources and diversify its business for transition from the pure upstream oil production on which INK has primarily focused to the downstream sector, such as production of plastic. The new polymer plant will support INK’s business diversification amid growing demand for high value-added polyethylene products and will create new job opportunities in the Irkutsk Region.
Irkutsk Polymer Plant will employ the most advanced modern technologies and commit to compliance with the strictest industry standards – the IFC Performance Standards of Environmental and Social Sustainability and the Equator Principles – and will undergo regular independent monitoring in that regard. The loan will support INK’s effort to further decarbonize its business by utilising associated petroleum gas in adherence with the company’s world-class ESG Policies.
Daniel Schmand, Global Head of Trade Finance & Lending, Head of Corporate Bank for EMEA, Deutsche Bank AG, commented: “Deutsche Bank has a long history of supporting important infrastructure projects in Russia, of which this transaction is a perfect example. The construction of INK’s new facility will support economic development in the region, in addition to creating opportunities for fruitful business ties between Japanese companies and the Russian petrochemical sector.”
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 20 March 2017 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.
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The bank has entered into an agreement to provide JBIC / NEXI-covered financing to Irkutsk Oil Company (INK) for the construction of a new petrochemicals plant, Irkutsk Polymer Plant, in East Siberia with support from Japanese suppliers.
Deutsche Bank AG, acting as Facility Agent and Lender, together with Japan Bank for International Cooperation (JBIC) as direct lender and a consortium of three commercial banks under Nippon Export and Investment Insurance (NEXI) coverage, today announced an agreement to provide a 13-year, 871 USD million credit facility to Irkutsk Oil Company (INK), a Russian limited liability company.
In addition to Deutsche Bank AG, Tokyo Branch, the commercial banking consortium includes Société Générale, Tokyo Branch, and Goldman Sachs Realty Japan Ltd. alongside JBIC.
The loan is provided to INK, which in turn will lend the funds to Irkutsk Polymer Plant LLC, INK’s wholly owned subsidiary. The purpose of the loan is to support the purchase of equipment from multiple vendors, with the main equipment for both the ethylene and polyethylene production facilities in the city of Ust-Kut, Irkutsk Region in East Siberia to be provided by Toyo Engineering Corporation.
The construction of a new ethylene and polyethylene production plant is the latest component of INK’s larger Gas Project, which initiated a full-scale gas development strategy to fully recover and monetise gas components throughout the entire gas cycling process. INK aims to utilize its sizable gas resources and diversify its business for transition from the pure upstream oil production on which INK has primarily focused to the downstream sector, such as production of plastic. The new polymer plant will support INK’s business diversification amid growing demand for high value-added polyethylene products and will create new job opportunities in the Irkutsk Region.
Irkutsk Polymer Plant will employ the most advanced modern technologies and commit to compliance with the strictest industry standards – the IFC Performance Standards of Environmental and Social Sustainability and the Equator Principles – and will undergo regular independent monitoring in that regard. The loan will support INK’s effort to further decarbonize its business by utilising associated petroleum gas in adherence with the company’s world-class ESG Policies.
Daniel Schmand, Global Head of Trade Finance & Lending, Head of Corporate Bank for EMEA, Deutsche Bank AG, commented: “Deutsche Bank has a long history of supporting important infrastructure projects in Russia, of which this transaction is a perfect example. The construction of INK’s new facility will support economic development in the region, in addition to creating opportunities for fruitful business ties between Japanese companies and the Russian petrochemical sector.”
For further information please contact:
Deutsche Bank AG
Media Contact
Phone: +7 495 363 2844
E-Mail: db@em-comms.com
About Deutsche Bank
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 20 March 2017 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.