TCI Sanmar achieves financial closure for $868 mn project

TCI Sanmar Chemicals, which was earlier called as Trust Chemical Industries (TCI) before it was acquired by Chennai-based Sanmar group has achieved financial disclosure on March 30, 2009 for its $868 million (around Rs 4,340 crore) project in Egypt. Consortium of Indian Banks have sanctioned around $565 million (around Rs 2,800 crore).

TCI which has become part of the Sanmar Group in 2007. The group has its presence in Chemicals, Engineering, Metals, Shipping and Specialty Chemicals.

The TCI Sanmar production facilities, located at Port Said, will be Egypt's largest chloralkali plant with a Vinyl Chloride Monomer (VCM) capacity of 400,000 tonnes per annum (tpa), half of which will be convereted into downstream PVC of around 200,000 tpa for sale in the local and regional markets. Caustic soda production capacity will also be increased to 275,000 tpa.

The banks which are financed the project include State Bank of India, Bank of India, ICICI Bank, Indian Overseas Bank, Axis Bank, Export-Import Bank of India, Bank of Baroda, Indian Bank, Syndicate Bank and Union Bank of India. State Bank of India, Bahrain branch will act as a facility agent.

These banks have together provided a long term loan facility to the tune of $565 million (around Rs 2,800 crore). Arab African International Bank is providing $70 million (around Rs 350 crore) as working capital facility.

Commenting the on financial closure, Sanmar Group's Chairman N Sankar said that the company would able to close this deal in the difficult financial situation prevailling in the wake of the global-melt down. The TCI Sanmar Checials which is expected to come on stream in early 2010, will be one of the significant global players in PVC.