Braskem Readies Jumbo PF in MXP, USD

Brazilian petrochemicals giant Braskem is readying a $1.75bn project financing for a 20-year concession to build and operate 4 processing plants in Mexico using natural gas produced by Pemex. Up to 70% of the debt could come from multilaterals, while the rest might be targeted at commercial lenders, in addition to any participation in a B loan, Braskem VP for international strategy Roberto Ramos tells LatinFinance. “This financing will most definitely be done in both pesos and dollars,” says Ramos, who extols Mexico’s sophisticated project finance market and participants. The deal will likely have a 4-5 year construction period and around 12 years of post-completion amortizations. Ramos says the IFC, BNDES, US Exim and Bancomext/Nafin have already expressed strong interest in participating in the transaction, and that their contributions could add up to a sizable portion of the total. However, no commitments have been made yet. Braskem expects to put out an RFP soliciting lead arrangers for the deal in January, says Ramos. Brazilian and Mexican banks might be particularly well positioned for the financing given close ties to sponsors in the petrochemical project, he notes. The company used Mexico-based boutique Protego for advice throughout the concession bidding process, and will select a financial advisor for the financing. Braskem owns 60% of the Mexican concession, Idesa 20% and another investor, possibly Pemex, may end up owning the remaining 20%. Braskem and Mexico’s Idesa won the concession in the first week of November in a process rumored to involve some 30 companies.