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$75 million loan to revamp Alcoa’s first major Russian investment
Loan to fund modernisation of 2 aluminium plants; $25 million syndicated to HSBC
The European Bank for Reconstruction and Development has lent Alcoa, the
world’s largest supplier of manufactured aluminium parts, $75 million to
modernise two aluminium plants which the group bought earlier this year as
part of its first major investment in Russia. The Bank remains lender of
record for the full amount; $25 million has been syndicated to HSBC Bank USA,
National Association, under an EBRD A/B loan structure.
If you would like to attend the signing please call our Moscow Resident
Office.
Alcoa will use the EBRD’s five-year loan to refurbish the two plants, recently
acquired as part of a $257 million investment, in Samara, in the Volga region
800 km southeast of Moscow, and at Belaya Kalitva, in the Rostov region 800 km
south of Moscow. These plants, which operate in the higher value-added segment
of the Russian aluminium sector, once played a key role in providing
fabricated aluminium for use in the Soviet aerospace industry.
The purpose of the upgrade is to bring about major environmental improvements,
make more efficient use of energy, broaden the product range and improve
quality standards. The company has committed to an environmental action plan
whose goals include reducing air emissions, cutting water consumption and
improving the treatment of waste water. The surge in world oil prices is
increasing demand for aluminium products as vehicle and aircraft manufacturers
seek lighter parts to lower fuel consumption, and Alcoa’s Russian plants are
well placed to meet the growing needs of the European aircraft industry, EBRD
First Vice President Noreen Doyle said.
Senior representatives of Alcoa and the EBRD participated in the signing
ceremony in Moscow. The EBRD is the single biggest financial investor in
Russia, EBRD Senior Banker Paul Burton said at the ceremony. We are very
pleased to be working with Alcoa on a project that will stimulate competition
in this important sector of the Russian economy, open new export markets for
Russian plants and introduce them to the stringent requirements necessary to
supply leading world manufacturers in the aircraft, automotive and packaging
fields. Alcoa is the world’s largest producer of primary aluminium, fabricated
aluminium and alumina, the key component of aluminium production.
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