Five state banks to give 99 bln rbl to EuroChem 124 bln rbl plant

MOSCOW, Dec 25 (PRIME) -- VEB.RF, Sberbank, VTB, Gazprombank and Otkritie Financial Corporation (FC) Bank will invest 99 billion rubles in EuroChem’s 124 billion ruble ammonia and urea plant in Kingisepp, First Deputy VEB.RF CEO Nikolai Tsekhomsky said on Friday.

"Four large commercial banks that traditionally participate in the projects of a project financing factory: Sberbank, VTB, Gazprombank and Otkritie FC Bank, are participating,” Tsekhomsky said.

“The project is large: 124 billion rubles total. The banks’ participation is 99 billion rubles, meaning this is syndicated financing excluding our tranche we give to the factory, the tranche for the interest and a potential exceeding the budget."

The official also said that VEB.RF will invest about 12.5 billion rubles in a mega operator of water supply under an agreement with Rosvodokanal.

There is no decision on the purchase of a Russian Railways stake by VEB.RF, he said. "We know that this is a topic discussed in the government this is why we cannot comment so far," Tsekhomsky said.

Kommersant business daily said quoting Russian Railways’ draft investment program that VEB.RF may get a stake in Russian Railways by paying 82 billion rubles. It said that the government was to hold a final meeting to discuss the natural monopoly’s investment and financial plans for 2021-2023 on December 24.

(74.8392 rubles – U.S. $1)

End