SIBUR to repay NWF loan ahead of time

22 February 2022. SIBUR is planning an early and full repayment of bonds of ZapSibNeftekhim which were issued to finance the construction of ZapSibNeftekhim and in which the Russian National Welfare Fund (NWF) invested USD 1.75 bn in 2015. The total budget of SIBUR’s polymer facility project stood at USD 8.8 bn.

Previously, the Russian government made amendments to the Requirements for Financial Assets Used as Investment Vehicles for NWF Funds approved by Decree of the Government of the Russian Federation No. 18 dated 19 January 2008. The amendments enabled issuers of bonds related to self-sufficient infrastructure projects (the list of which is approved by the Russian government) to early repurchase their bonds that had been placed to attract funding from the NWF to finance infrastructure projects.

In 2020, SIBUR successfully completed the construction of ZapSibNeftekhim, Russia’s largest petrochemical facility and one of the world’s biggest basic polymer production sites, ahead of schedule.

The facility’s launch boosted import substitution of polyethylene and polypropylene and contributed to the development of the polymer processing segment. In certain customer industries, import substitution potential reaches up to 85–95%. Polyethylene and polypropylene are widely used in the construction, healthcare, car manufacturing, utilities and other industries.

The commissioning of ZapSibNeftekhim played a significant role in ramping up Russia’s non-commodity exports under the International Cooperation and Exports national programme. With the launch of ZapSib in 2020, SIBUR accounted for over 16% of the country’s non-commodity export growth.

From the investment date up to now, SIBUR's coupon payments on ZapSibNeftekhim bonds have added USD 290.5 m, or RUB 19.4 bn, to the federal budget. SIBUR’s early repayment of the bonds will enable the Russian Ministry of Finance to use the NWF's funds to finance other large-scale projects implemented by Russian companies.