Milbank LLP advised a syndicate of commercial lenders and development banks on a $440 million senior debt financing to Terminal Química Puerto México, S.A.P.I. (TQPM). The financing is for the construction of an ethane import terminal for the receipt and storage of imported cryogenic ethane to be located in the Pajaritos Lagoon in the State of Veracruz, Mexico, and a pipeline to deliver ethane to Braskem Idesa's Etileno XXI petrochemical complex 12 kilometers away.
TQPM is a 50/50 joint venture between Braskem Idesa, the owner and operator of the Etileno XXI petrochemical project, and Advario, a leader in liquid storage logistics with a global network handling a broad range of products. TQPM commenced construction of the project in July 2022, with completion expected by the end of 2024. The ethane import terminal and pipeline will have a capacity to deliver 80,000 barrels per day of ethane, which will allow Braskem Idesa to import 100 percent of its feedstock needs. Braskem Idesa’s Etileno XXI petrochemical project required an investment of US$5.2 billion and will produce an annual production of one million fifty thousand tons of high- and low-density polyethylene.
The Milbank team was led by Global Project, Energy and Infrastructure Finance partner Jaime Ramirez, along with special counsel Rhys Howard and associates Ana Bueno and Verde d’Aquino, with support for interest rate hedging provided by partner John Williams and associate Devan Zorn.
