Leverkusen, Germany-To finance Bayer's investment programme in Caojing, China, much of it aimed at the polyurethanes sector, the German group has syndicated a Euro 610 million ($782 million) credit facility in China, available in the local currency, Renminbi, or in dollars.
The 10-year credit arrangement will finance construction of a world-scale polyurethanes production plant by Bayer MaterialScience at its Caojing site, said Bayer, in a 3 July press statement. A production unit for MDI (methylene diphenyl diisocyanate) one of the raw materials for polyurethane foam, is part of the investment project at this site, which is planned to add up to $1800 million through 2009, Bayer pointed out.
BMS is building a 350 kilotonnes per annum MDI plant at Caojing, with start-up scheduled for late 2007 or early 2008.
The Bayer unit is also building an 80 ktpa MDI distillation unit for treating crude MDI at Caojing, which is scheduled for start-up in the third quarter of this year.
BMS is also building a 160 ktpa plant to make TDI (toluene diisocyanate) at Caojing, scheduled to be in operation by the end of 2009.
The loan syndication, lead-managed by China Construction Bank, HSBC, Industrial and Commercial Bank of China, and Standard Chartered Bank, was significantly oversubscribed, said Bayer.