Baker & McKenzie (Gaikokuho Joint Enterprise) recently advised the Japan Bank for International Cooperation (JBIC), Deutsche Bank AG, Tokyo Branch as the agent, Societe Generale Bank, Tokyo Branch and Goldman Sachs Realty Japan Co. in connection with a USD 871 million buyer's credit facility for Irkutsk Oil Company (INK), a limited liability company incorporated in the Russian Federation. The commercial banks' portion of the loan will be insured by Nippon Export and Investment Insurance (NEXI).
The loan will be provided through INK to Irkutsk Polymer Plant, an INK subsidiary also incorporated in the Russian Federation, for the construction of a new ethylene and polyethylene production plant in Ust-Kut in the Irkutsk Region of the Russian Federation. The funds will be used to purchase plant equipment from Toyo Engineering Corporation and other vendors.
This project is socially significant as it will support INK's efforts to promote decarbonization through effective use of associated petroleum gas in line with INK's strict global ESG policy. At the same time, it will create business opportunities in the Russian petrochemical sector by supporting Japanese companies' exports, thereby improving the international competitiveness of Japanese industry.
Baker McKenzie's Tokyo office team was led by partners Seishi Ikeda and Kosuke Suzuki with the support of associates Masayoshi Kobayashi and Michael Tiralongo in collaboration with Andrey Lebedev of the Moscow office and personnel from the London, Paris and Berlin offices.