TCI Sanmar Chemicals Llc, part of the Sanmar group, plans to issue equity to raise funds for its $1.2-billion (Rs 5,520 crore) vinyl chloride monomer (VCM) / polyvinyl chloride (PVC) project in Egypt.
Sanmar group chairman N Sankar said, “We are in discussions with various investors as well as internally for the proposed equity investment, the quantum of which will be decided in some time.” He declined to comment further.
Sankar was speaking on the sidelines of Tiecon Chennai- 2010, an annual networking event for people in business.
TCI Sanmar Chemicals is the entity that Sanmar group bought in South Port Said in Egypt in March 2007. In March 2009, the company announced financial closure for the project, having tied up for $ 565 million with a syndicate of ten banks. In addition, it also went in for a separate $70-million working capital facility from Arab International Bank.
Sankar said that Phase I of the project would go onstream this year and Phase II would be completed over the next two years. The plant’s capacity of 650,000 - 700,000 tonnes per annum makes it one of the largest in the world, Sankar said.