Sukhodol sea port to receive syndicated loan

AK&M 01 September 2020 22:10

VTB Bank, VEB.RF and the Sukhodol sea port have signed a syndicated loan agreement to finance the construction of a coal seaport on the northern shore of Sukhodol Bay in Primorsky Krai, VTB Bank informed.

The project will be implemented under the Project Finance Factory program operated by VEB.RF. Project Finance Factory is a mechanism for government support of investment projects in priority sectors of the Russian economy, aimed at increasing the volume of lending.

The specialized coal seaport includes a transport and handling complex and internal and external infrastructure facilities, including a specialized terminal for coal processing. The coal terminal with a capacity of 12 million tonnes per year and prospects of expansion to 20 million tonnes per year and is expected to be launched in October 2021.

The syndicated loan ceiling is about RUB 32 billion composed by the maximum loan amounts available from VTB Bank (RUB 27 billion) and VEB.RF (RUB 5 billion).

VEB.RF is a state development corporation. In partnership with commercial banks and investors, it contributes to implementation of the national projects, including development of high-tech industries, non-commodity exports, modernization of infrastructures and urban agglomerations. The coordination perimeter of VEB.RF includes the largest development powerhouses of Russia: the Russian Export Center, DOM.RF, RSMB Corporation, the Far East Development Fund, Monotowns Development Fund (MONOTOWNS.RF).

VTB Group is a Russian financial group comprising more than 20 credit and financial companies operating in all the key segments of the financial market. In the CIS, the group is active in Armenia, Ukraine, Belarus, Kazakhstan, Azerbaijan. VTB's banks in Austria, Germany and France are operating as parts of the European sub-holding led by VTB Bank (Austria). Besides, the group has subsidiary and affiliate banks in the UK, Cyprus, Serbia, Georgia and Angola, as well as one VTB branch in China and India, two VTB Capital Plc branches in Singapore and Dubai.

IFRS net profit of VTB Group for January-April 2020 decreased by 19% year-on-year to RUB 40.7 billion.