The Project sponsors are Braskem S.A. (“Braskem”) and Grupo Idesa S.A. de C.V. (“Idesa”). Braskem and Idesa have established a joint venture company, Braskem Idesa, S.A.P.I. (the “Company”), to house the Project. Braskem and Idesa will hold shareholding interests of up to 65% and up to 35%, respectively, in the Company. Braskem is a listed Brazilian company and leading thermoplastic resin producer in the Americas. Idesa is a privately owned Mexican petrochemical company dedicated to the production and distribution of a variety of petrochemical products.

The total Project cost is estimated at $4.3 billion. The proposed IFC investment consists of a loan of up to $300 million for IFC’s own account and the mobilization of a B Loan.

300.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	300.0
Equity

* These investment figures are indicative

The Project will be located in Nanchital de Lazaro Cardenas, in the state of Veracruz.

The Project is expected to have a significant development impact by (i) adding value to a natural resource which would otherwise be used as natural gas, (ii) creating forward linkages that would develop the downstream industry, (iii) improving the position of Mexican downstream converters, such as savings on inventory, reduced foreign exchange exposure, local access to a PE supplier that could provide services and new solutions, (v) providing inclusive growth for an economically underdeveloped southern region of Mexico, (iv) creating employment and training opportunities.

IFC''s Role & Additionality in the Project include: (i) long-tenor financing, (ii) mobilization of other sources of financing including B Loan/Parallel lenders, (iii) leadership on E&S, Technical, and Insurance issues.

The Project has been designated as Category A according to IFC’s environmental and social review procedure. Specific key environmental and social issues associated to the Project include: environmental and social management capacity, operational safety, air emissions, liquid effluents, handling, storage, and transportation of hazardous materials, biodiversity aspect, occupational health and safety, emergency response, community and stakeholders engagement, potential population influx, and potential cumulative impacts. The sponsors conducted a comprehensive assessment of the impacts and mitigations for all phases of the Project. The sponsors also consulted and engaged the public and community. During construction the sponsors will implement sound practices as per the IFC requirements, and once in operation, the Project will be a state-of-the-art facility that will utilize best available technology fully complying with local and IFC requirements.
Information about potential environmental and social impacts and how they will be addressed by the company is summarized in the Environmental and Social Review Summary as well as in the Environmental and Social Impact Assessment conducted for the Project.