Malaysia / Loan Insurance for Refinery and Petrochemical Integrated Development Project

April 2, 2019

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Kazuhiko Bando) has decided to provide insurance for loan extended to the Refinery and Petrochemical Integrated Development (RAPID) Project, implemented by Pengerang Refining Company Sdn. Bhd. (Pengerang Refining Company).

RAPID will consist of a 300,000 barrels per stream day refinery and steam cracker complex in Johor, Malaysia, being developed by Pengerang Refining Company jointly owned by Petroliam Nasional Berhad, the state-owned petroleum company in Malaysia, and Saudi Arabian Oil Company, the state-owned national oil company in Saudi Arabia. Toyo Engineering Corporation, a Japanese company, has been awarded an EPC contract for the steam cracker complex.

Pengerang Refining Company is going to fund this RAPID Project through project financing, including funds for purchasing necessary equipment from Japan. For the purchase of the Japanese equipment, Japan Bank for International Cooperation (JBIC) and commercial banks will jointly provide USD 1.5 billion loan, and NEXI’s insurance will support USD 600 million loan provided by the commercial banks that are Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., and Citibank, N.A., Tokyo Branch.

The loans will financially support the Japanese exports and help Japanese companies to maintain and strengthen their international competitiveness. As Japan’s policy-based financial institution, NEXI will continue to actively support exports by Japanese companies.

Insured Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Citibank, N.A., Tokyo Branch
Insured Value USD 600 million
Tenor approx. 16 years
Covered risks Political Risk 100%, Commercial Risk 95%

Contact: Natural Resources Group I, Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7672