KfW Ipex is providing a €55mn loan to finance the expansion of Gail India’s petrochemical complex in Uttar Pradesh state.
The core components of the new facilities will be supplied by the German exporters Siemens and Coperion. German export insurer, Euler Hermes, has agreed to cover 95% of the loan. BNP Paribas acted as the advisory bank.

Luis-Miguel Gutiérrez, office director for KfW Ipex’s Mumbai office, tells GTR: “The Gail project fits well with us, because it represents the core business of KfW Ipex. In case of this transaction the equipment supply not only helps Gail to modernise and expand production, but will also support two important export companies in Germany.”

“India is politically and economically of high importance for Germany and German companies, particularly in the environmental industries,” he adds.

The expansion will include a gas treatment plant, for which Siemens will supply three gas turbines and two single shaft compressors while Coperion will provide the extrusion system. The project aims to double the annual production volume of polymers from 450,000 tonnes to 900,000 tonnes as of 2014.

Elsewhere, KfW Ipex, along with two unnamed institutional investors, has also agreed a financing package for the construction and operation of the Seigneurie de Beaupré 4 wind farm in Quebec, Canada.

The bank will finance the guarantees as well as a credit tranche with a variable interest rate. The entire financing volume is C$166mn (approximately €115mn). The primary supplier is German wind turbine manufacturer Enercon, which is also taking on the long-term service and maintenance of the turbines as well as the construction.

The turbines are scheduled to be brought online by the end of 2014.