Investments: Ineos raises EUR3.5 bn for ethylene project; Advent/Lanxess receive clearances for engineering materials jv
![Ineos raises EUR3.5 bn for ethylene project Ineos raises EUR3.5 bn for ethylene project](http://plasticsandrubberasia.com/images/feb2023/Ineos.jpg)
UK chemical firm Ineos says it has secured EUR3.5 billion financing for its ethylene project known as Project One, said to be the largest investment in the European chemical sector for a generation.. The total investment in the ethylene project at port of Antwerp is estimated at about EUR4 billion, with cracker operations expected to start in 2026, in line with previous stated schedule.
The new cracker is said to have the lowest carbon footprint of all European crackers, five times better than the worst in Europe and two times better than the best, according to Ineos.
The plant is designed to use low carbon hydrogen. As soon as enough becomes available, the cracker will have a zero carbon footprint.
Jason Meers, CFO INEOS Project One says: “This is an incredibly important moment for Ineos. Our ethane cracker will set new environmental standards for Europe as well as help revitalise the whole of the European chemical industry.”
Supported by 21 commercial banks, the deal validates the strong commercial rationale of the project and its leading environmental characteristics. The debt will be drawn in stages to support the spend profile of the project through to completion.
It comprises EUR1.5 billion of uncovered debt, EUR1.2 billion of covered facilities from export credit agencies UKEF, Cesce and SACE; and an EUR800 million covered tranche of which up to EUR500 million is guaranteed by Gigarant (a vehicle of the Flemish Government that provides loan guarantees).
![Advent/Lanxess receive clearances for engineering materials jv Advent/Lanxess receive clearances for engineering materials jv](http://plasticsandrubberasia.com/images/feb2023/Advent_Lanxess.jpg)
Meanwhile in other news, India’s competition authority has recently granted merger clearance for the planned joint venture for high-performance engineering materials by Advent International and specialty chemicals company Lanxess. Other relevant competition authorities approved the transaction in the course of last year and lately the EU Commission granted clearance in January 2023. The transaction is therefore ready for closing which is now planned to take place no later than the beginning of April 2023.
Last year, Advent and Lanxess had announced the envisaged establishment of an Advent controlled, leading global engineering materials joint venture company with sales of around EUR3 billion, combining the DSM Engineering Materials business with Lanxess’s High Performance Materials business.
(PRA)
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