Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, announces the successful closure of a BRL 36.7 million financing agreement with BNDES, the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social), for the financing of Borealis Brasil SA expansion. The transaction was formally closed with an Itatiba site visit and official closing ceremony.
"The strong financing structure with a combination of the loans from BNDES and the flexible funding provided by Borealis were key for the project," stated Leonardo Harsch, Managing Director Borealis Brasil. "Our new facilities are state-of-the-art in every way and will provide the basis for the future success of Borealis Brasil."
The transaction was formally concluded in the presence of a delegation from BNDES headed by Gabriel Lourenço Gomes, Head of the Chemical Industry Department; and representatives from HSBC, who supported the transaction from the commercial bank side under the lead of Leandro Borges, Head of Multinationals, South America.
"The recently expanded and upgraded Borealis facilities in Itatiba will bring new technologies to the Brazilian compounding industry and represent a great achievement for Borealis Brasil," said Gabriel Lourenço Gomes. "There are many other investment opportunities in the Brazilian chemicals sector, and I hope that the Borealis Group and BNDES will be able to transform some of those opportunities into new ventures in the near future."
Jan-Martin Nufer, Director Treasury and Funding at Borealis Group, joined Leonardo Harsch and Ricardo Felix, Finance Director Borealis Brasil, in personally handing over the tombstones to the local finance team, BNDES, HSBC and the involved law firm.
"This transaction does more than provide financial support to our project – it marks the starting point of a relationship between BNDES and Borealis Group. Both parties have invested a lot of time and work to accommodate the other's needs, always in the spirit of mutual understanding, and with a very professional execution," concluded Jan-Martin Nufer.
The expansion project of Borealis Brasil concerns the compounding facilities in Itatiba with a total investment volume of around BRL 100 million. It includes two new extruder lines, a new production building, new warehousing facilities and the expansion of the existing utilities.