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EBRD raises funds for Russian pipeline valves developer

27th February 2014

The EBRD has raised EUR 123m in long-term funding for Russia’s manufacturer of pipeline valves to finish and upgrade two plants that belong to the country’s oil and gas systems

The long-term funding will go to Russia’s manufacturer of pipeline valves to finish and upgrade two plants

The European Bank for Reconstruction and Development (EBRD) has raised EUR 123m in long-term funding, including a loan, for Russia’s leading manufacturer of pipeline valves to finish and upgrade two plants that belong to the country’s oil and gas systems in the Tula area.

The EBRD, which is the main lender for the full amount, will supply EUR 73m as an A loan with an eight-year maturity.

The other EUR 50m will be provided made by Nordea Bank as a syndicated B loan with a maturity of seven-and-a-half years.   

The loans were signed in Moscow and will fund the completion of a greenfield hot press stamping plant close to Sukhodol, a town near Moscow.

The new hot press plant will have a consistent supply of half-body casings for the production of pipeline valves and handle the increasing demand for large stamped parts used in various industries in Russia, especially energy and chemicals.

Lindsay Forbes, EBRD director for industry, commerce and agribusiness in Russia, said, “The EBRD is proud to continue its support to a regional privately owned company that is operating to world class standards. This is an example of Russian manufacturing at its best.”

Christopher Mackenzie, the chairman of the supervisory board of oil and gas systems group, commented, “We appreciate the EBRD’s continued support for a project that allows our company to modernize its manufacturing facilities in Tula and we look forward to further successful cooperation with EBRD in the future.”

 

 

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