Russia's Sibur plans domestic bond issue to fund Amur gas complex
VLADIVOSTOK, Russia, Sept 6 (Reuters) -Russia's petrochemical giant Subur plans to place domestic bonds before the end of the year to fund the Amur gas and chemical complex (GCC), Chief Executive Mikhail Karisalov said on Friday, but stopped short of revealing its size.
The Amur complex in Russia's far east is a joint venture with China's Sinopec 600028.SS due to start in 2027, becoming one of the world's largest producers of polyethylene and polypropylene.
"We are preparing for the bond issue and are at the advanced stage," Karisalov said on the sidelines of the Eastern Economic Forum in the Pacific port of Vladivostok.
More than half of the plant has been built, Sibur's management member Darya Borisova said this week. Its cost had been put at more than $10 billion, but Karisalov said earlier this year that the project had become slightly more expensive.
The project financing scheme initially consisted of 70% loan funds and 30% shareholder investments.
The Amur GCC is expected to produce 2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene a year, processing gas fractions from Gazprom's GAZP.MM gas processing plant, which is also called Amur.
Reporting by OLesya Astakhova; Writing by Vladimir Soldatkin; Editing by Clarence Fernandez
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