Linklaters advises INEOS on its €3.5bn financing for Project ONE
Linklaters has advised INEOS Olefins Belgium on the development and €3.5bn financing to support the construction and operation of Project ONE, which is set to be the most environmentally sustainable ethane cracker in Europe.
Located in Antwerp, Project ONE has seen the largest investment in the European chemical sector for a generation. Following four years of construction, the plant is set to begin production in 2026 and will create 450 new jobs. It also has the capability of being fuelled entirely with low carbon hydrogen, as well as anticipating a carbon capture facility and future electric furnaces.
The cracker, which will produce ethylene, will bring new opportunities to the chemical cluster in Antwerp as well as strengthen the resilience of the whole of the European chemical industry.
Supported by 21 commercial banks, the debt will be drawn in stages to support the spend profile of the project through to completion. It comprises €1.5 billion of uncovered debt, €1.2 billion of covered facilities from export credit agencies UKEF, Cesce and SACE; and an €800 million covered tranche of which up to €500 million is guaranteed by Gigarant, a vehicle of the Flemish Government that provides loan guarantees.
Linklaters’ cross-practice and multijurisdictional team advised INEOS. The construction aspects of the project were led by Energy & Infrastructure partners Andrew Penfold, Richard Coar and managing associates Harith Canna and Shoneez Rugan (all London) and advice on Belgian law and land arrangements were led by partners Pieter Puelinckx and Lieve Swartenbroux and managing associate Lothar Van Driessche (all Brussels). The project financing was led by partners Matthew Keats and Ilia Ditiatev, assisted by Kwaku Osei, Izi Peplinski and Carina Chan.
Andrew Penfold, commented:
“Project ONE is a landmark transaction for the European chemical industry. As well as developing the local economy, Project ONE will bring renewal to the industry with cutting-edge technology and a low environmental footprint. We are proud to have supported INEOS and look forward to watching the progress of the project as it enters the construction phase.”
Linklaters’ Energy & Infrastructure team is at the forefront of the market advising on the development and innovative financing of complex, large-scale projects, highly structured transactions and mergers and acquisitions in the energy and infrastructure sectors across the globe. Ranked Band 1 by Chambers 2023 for Global Projects & Energy, the team has advised on over $US700bn of greenfield project finance mandates since 2005.
