Bank of China arranges financing for Silleno Atyrau Petrochemical Complex Construction Project (Linked to Record ID#52424)

Project narrative

In December 2023, Silleno LLP — a special purpose vehicle and joint venture of KMG (49.9% stake equity stake) SIBUR Holding (40% equity stake), and KMG PetroChem (10.1% equity stake) — hired Bank of China to arrange financing for the Silleno Atyrau Petrochemical Complex Construction Project. The total indicative cost of the project is $7.7 billion and it is expected to be financed with a mix of debt (via bank loans) and equity (via shareholder contributions). On November 7, 2022, KazMunayGas (KMG) — the state-owned oil and gas company of Kazakhstan — and SIBUR Holding signed a set to binding documents to joinithe project. Then, on March 28, 2023, SIBUR Holding was officially registered by Kazakhstan’s authorities as a 40% stakeholder in joint venture Silleno LLP. Shortly thereafter, in April 2023, a set of EBD/FEED development contracts were signed for the project. On August 23, 2023, Diana Arysova, the deputy head of KMG, revealed that KMG, Sibur, and Sinopec were undertaking a feasibility study for the Silleno Atyrau Petrochemical Complex Construction Project and final investment decision (FID) was expected in mid-2024. On October 16–17, 2023, binding documents regarding Sinopec’s entry into the joint venture (project completion) were signed at the Belt and Road Forum for International Cooperation in Beijing. Then, in November 2023, the project’s feasibility study was approved by Gosexpertiza. One month later, in December 2023, Silleno LLP signed a contract with the Kazakh Institute of Oil and Gas for the development of design and estimate documentation.