IFC pools $178 M for polyethylene firm

The World Bank's International Finance Corp. (IFC) has successfully pooled $178 million worth of loans from eight foreign banks for Bataan Polyethylene Corp. (BPC) paving the way for the commercial operations of BPC this July, it was learned yesterday.

In a press briefing, BPC human resources and administrative manager Butch Aguila said the total cost of the project amounted to about $330 million. The remaining $122 million will be financed by infusion of fresh equity from BPC shareholders.

Aguila said the eight banks that have participated in the loan syndication include Development Bank of Singapore, Bank of Tokyo-Mitsubishi, Fuji Bank, Sumitomo Bank, ANZ Investment Bank, National Westminster Bank, Sakura Bank and Industrial Bank of Japan. The signing of the loan agreement will be held on Feb. 16.

BPC shareholders include Bataan Holdings Corp. headed by Antonio Garcia. BHC is composed of Profinda Holdings, All Asia Capital and Trust Corp. and Plastic City Corp.

The foreign partners, on the other and, include Petrolian Nasional Berhad of Malaysia Sumitomo Corp. of Japan, and BP International Ltd. of United Kingdom.

According to Aguila, the IFC-led loan syndication indicted the confidence of foreign investors in the prospects of the petrochemical industry in the country. He said there is also a huge demand for polyethylene products that need to be addressed since the growth of petrochemical industry is directly proportional to the growth of the country's GNP.

BPC, the country's second resins manufacturer, is located in 20-hectare portion of the 200-hectare Philippine National Oil Co. (PNOC)-Petrochemical Complex in Mariveles Bataan.

The BPC plant, which started construction in 1997, will commence commercial operations in July this year. It will have a nameplate capacity of 250,000 metric tons per year.

Aguila said the plant's capacity could be increased significantly due to its use of Bataan Plant Amoco Chemicals' innovene polyethylene technology. The plant will produce both linear low density and high density polyethylene resins. This resin will be marketed to fabricators who will, in turn, transform the material into a wide range of everyday products such as carrier bags; injection moulded crates and pallets; blow moulded bottles; tapes and filaments for ropes and nets; and water and gas pipes.