Deutsche Bank AG leads 147 million euro financing for Kazanorgsintez
The bank has signed an agreement to finance the turn-key construction of a 250 Megawatt (MW) combined cycle gas turbine power plant in Kazan.
Deutsche Bank AG, acting as Sole Mandated Lead Arranger and Lender together with a syndicate of two banks, today announced an agreement to provide a 15-year, 147 million euro credit facility to Kazanorgsintez PJSC (member of TAIF group). The financing will be used for the construction of a 250 MW combined cycle gas turbine power plant in Kazan, Republic of Tatarstan, Russian Federation.
German Export Credit Insurance Agency Euler Hermes AG is backing the credit facility, having previously backed two other loans that Deutsche Bank AG lead-arranged as part of a banking syndicate in 2018 to support the long-term investment plans of NizhnekamskNefteKhim PJSC, another company in the TAIF Group.
In addition to Deutsche Bank AG, the banking syndicate comprises two other German banks: Bayerische Landesbank and Landesbank Baden-Wuerttemberg.
The new gas turbine power plant is due to be commissioned in 2023 and will have a combined cycle efficiency of more than 51 percent. It will also create new jobs in the region and will have a positive environmental impact by using syngas (a by-product of ethylene production) as feedstock.
Daniel Schmand, Global Head Trade Finance & Lending, Head of Corporate Bank for EMEA, Deutsche Bank AG, commented: “Throughout our successful 140-year history in Russia, we have always served as a reliable and effective platform to develop and facilitate German-Russian trade ties and to support important infrastructure projects, of which this transaction is a perfect example. We are pleased that this represents the further expansion of our cooperation with the TAIF Group, in what will be an important and beneficial project for the region.”
Kazanorgsintez PJSC is a chemical company with strategic importantance for economic development in the Republic of Tatarstan and Russia as a whole. It is one of the largest domestic producers of polyethylene, and the sole polycarbonate producer in Russia. Kazanorgsintez PJSC is a part of TAIF Group. Established in 1958, the company is situated in Kazan, the capital of the Republic of Tatarstan. Kazanorgsintez PJSC currently produces ethylene, polyethylene, polycarbonate, polyethylene pipes, bisphenol, phenol, acetone, ethylene glycols, ethanolamines and other organic chemicals. The products comply with international quality standards and are exported to 31 countries worldwide.
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