Eurasian Development Bank to open $150 mln credit line for Kazakhstan Petrochemical Industries

ASTANA. June 26 (Interfax) - Kazakhstan Petrochemical Industries Inc. LLP has signed a $150 million credit line agreement with Eurasian Development Bank (EDB), the bank said in a press release on Monday.

The borrowed funds will be used to finance current operations of the company, according to the press release.

Kazakhstan Petrochemical Industries Inc. LLP (KPI), organized in 2008, is the operator of an integrated gas and chemical complex in the Atyrau region. Since 2022 the complex has been producing polypropylene using the gas from Tengiz. The design capacity of the project, which was taken into commercial operation in early November 2022, is 500,000 tonnes of granular propylene a year.

KPI is owned by National Company KazMunayGas JSC with 49.5%, Samruk-Kazyna Ondeu with 49.5% and Almex Plus Firm LLP with 1%.

In November 2022, Kazakhstan's Sovereign Wealth Fund Samruk-Kazyna, National Company KazMunayGas, Russia's SIBUR Holding PJSC and the stakeholders of the operating companies signed main documents for the creation of joint ventures based on KPI Inc. LLP and Silleno LLP. The parties agreed on terms and conditions of their partnership in the joint ventures located in the special economic zone National Industrial Petrochemical Technical Park in Atyrau. This includes investment in construction of a polyethylene plant with a production capacity of 1.25 million tonnes per year, as well as the organization of sales of the polypropylene that will be produced by the polypropylene plant with a design capacity of 500,000 tonnes per year. SIBUR's share in both joint ventures is 40%.

On May 18, 2023, KazMunayGas and China Petroleum & Chemical Corporation (Sinopec) signed an agreement on principles regarding a joint implementation of the polyethylene project in the Atyrau region. The document was signed during the state visit of Kazakh President Kassym-Jomart Tokayev to China.

The Eurasian Development Bank (is an international financial organization, founded by Russia and Kazakhstan in January 2006 for the purposes of assisting the development of the market economies of its state members, as well as ensuring their stable economic growth and expanding trading operations. The states participating in the bank are: Russia and Kazakhstan as founders, as well as Armenia, Belarus, Kyrgyzstan and Tajikistan as members. The EDB is headquartered in Almaty, Kazakhstan. The charter capital of the bank is $7 billion.