RDIF and international funds invest in SIBUR’s ZapSibNeftekhim project

Press release, 09.12.2015

Moscow, December 9, 2015 - A consortium of investors, comprising the Russian Direct Investment Fund (RDIF) and leading Middle Eastern sovereign wealth funds have invested in SIBUR’s ZapSibNeftekhim project – an integrated petrochemical complex in Tobolsk, Tyumen Region (Russia).

On December 4, ZapSibNeftekhim completed the placement of 15 year bonds worth $1.75 billion on behalf of the Ministry of Finance of the Russian Federation for investing in this project. The bonds were placed to attract financing from Russia’s National Welfare Fund (NWF) as part of RDIF’s quota (10%) from NWF, which is allocated for the implementation of infrastructure projects.

Total investment in the project amounts to $9.5 billion. In addition to funds raised in the form of debt financing from the NWF, up to $3.3 billion are being provided by commercial banks, RDIF and its co-investors. SIBUR is also continuing to fund the facility’s construction at its own expense.

The funds will be used to develop industrial infrastructure for a forthcoming facility, which will process raw hydrocarbon materials into polyolefins. The development of this facility is currently SIBUR’s largest investment project. The project is aimed at deep conversion development of large volumes of Western Siberia’s oil and gas by-products, including associated gas, and the import substitution of highly demanded polymers in the Russian market.

ZapSibNeftekhim will be the largest modern petrochemical facility in Russia. The project includes the construction of a steam cracker with a capacity of 1.5 mtpa of ethylene, about 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF) per year, along with units producing various grades of polyethylene and polypropylene with a total capacity of 2 mtpa per year. The latest advanced technology in the fields of processing raw hydrocarbon materials and logistics will be utilized during the construction and operation of the petrochemical complex in order to ensure the reliability, safety, and efficiency of the project.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF),said:

“Working with leading sovereign funds from the Middle East as co-investors in the ZapSibNeftekhim project is a milestone in Russian industry and infrastructure development. This project will bring sustainable returns to investorsand incentivise further development in a number of related industries of the Russian economy. The investment conforms to RDIF’s mandate, which is to raise funds for infrastructure development and improving industrial efficiency in Russia.”

Dmitry Konov, CEO of SIBUR,noted:

“Investments made by RDIF and its international co-investors into ZapSibNeftekhim prove the value of this project, SIBUR’s largest to date. SIBUR has already invested a substantial amount of its own funds and received credit funds from large commercial banks. The long-term financing from the NWF on favourable terms as well as investments from RDIF and its partners provide additional guarantees of successful project completion and help to optimise the company’s debt portfolio.”

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ZapSibNeftekhimis a vital step in the development of Western Siberia’s Petrochemical Cluster as laid out in Russia's 2030 Petrochemicals Development Plan.

ZapSibNeftekhim will form part of the Tobolsk production site, including Tobolsk-Neftekhim and Tobolsk-Polymer, which are already operational. Tobolsk-Neftekhim’s gas fractionation capacity has been significantly expanded, an NGL pipeline has been constructed between the Purovsky Gas Condensate Processing Plant and Tobolsk-Neftekhim, and the throughput of the private Denisovka station of the Sverdlov Railway has been doubled, all specifically for this project.

Work on the site has already commenced: pile driving for the steam cracker is currently underway, while roads and a water disposal system have already been constructed. Contracts for design engineering and supply of equipment and materials for the facility’s key processing units have been signed and are being implemented by leading engineering companies and suppliers, which have been engaged for the project. SIBUR has signed an agreement for the design of infrastructure and off-site facilities with NIPIgazpererabotka, Russia’s leading engineering company in the gas processing industry.

Russian Direct Investment Fund (RDIF)was established in 2011 to make equity co-investments, primarily in Russia alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information atwww.rdif.ru

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and is a leader in the Russian petrochemicals industry. SIBUR operates 26 production sites in various regions of Russia. The Group employs 25,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in 77 countries worldwide. Further information at www.sibur.ru

For additional information contact:

Maria Medvedeva
Russian Direct Investment Fund
Director, Media Relations Department
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
E-mail:
mm@rdif.ru

Andrew Hayes / Elena Garside/ Joseph Burgess
Hudson Sandler
Tel: +44 (0) 20 7796 4133

Corporate communications of OOO “SIBUR” –
Managing company PJSC “SIBUR Holding”
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