EBRD: loan for Turkish bottling plant in Russia

The EBRD (European Bank for Reconstruction and Development) has reportedly raised EUR 41 million in long-term funding for an established client to expand production at a Turkish-owned glass packaging …

The EBRD (European Bank for Reconstruction and Development) has reportedly raised EUR 41 million in long-term funding for an established client to expand production at a Turkish-owned glass packaging plant in north-west Russia. The amount includes a EUR 20 million loan syndicated to Societe Generale and ING, with each taking up half the amount, as reported by the press-centre of EBRD. Even if large parts of the international syndication market have been at a standstill since autumn 2008, the two commercial banks are taking part in the loan syndication under an EBRD A/B loan structure, providing funding for five years for the Kirishi plant near St. Petersburg, owned by the largest producer of glass packaging in Russia, OJSC Ruscam-Kirishi. The EBRD has taken EUR 21 million onto its own books and remains the lender of record for the full EUR 41 million. Of this amount, EUR 12.6 million is being provided as a C loan of up to seven years most of which is to be disbursed in US dollars, while EUR 8.4 million is being provided to the client as a five-year A loan on under the same terms as the B loan. Russia is now ranked as the world“s third largest beer market after the US and China, and the client, ultimately controlled by Sise ve Cam Fabrikalari AS (Sisecam), Turkey“s largest glass producer, said it plans to build an additional glass furnace at its recently acquired Kirishi plant as part of a EUR 73 million modernization. All the raw materials for glass production at the Kirishi plant will be sourced within the country, as with Sisecam Group“s four other existing Russian plants. Gilles Mettetal, EBRD“s director for Agribusiness said: We are delighted to participate in a fourth investment with our long-standing partner Sisecam in supporting their expansion in Russia in an important sector.