The EBRD is proposing to provide a long term corporate loan to OAO "Chelyabinsk Tube Rolling Plant", one of Russia's largest producers of seamless and welded pipes located in the city of Chelyabinsk.
The proposed loan would be disbursed against equipment modernisation, energy efficiency, environmental and other strategic objectives in connection with the company's pipe manufacturing facilities.
The loan would be the first long-term finance received by the company. It comes partly as recognition of the company's progress in transparency, high environmental and corporate governance standards and would encourage further progress in this area. For example the company will produce IAS accounts for 2001, 2002 and in future years, adhere to the Corporate Governance Code and further environmental improvements.
Loan syndication would introduce the company to commercial banks and compliance with Western-style bank loan covenants.
Chelyabinsk Tube Rolling Plant is one of Russia' s largest hot rolled seamless and cold rolled welded pipe producers. Most of its production is sold in Russia and the CIS to the oil and gas, energy, machine building, construction and other sectors.
A 6 year senior corporate loan of up to US$ 50 million (EUR 51 million). The Bank will attempt to syndicate up to US$ 20 million (EUR 20.4 million) to commercial banks on a best efforts basis.
US$ 50 million (EUR 51.5 million).
The project has been screened B/1 given potential environmental, health and safety risks and liabilities associated with past and current operation of the manufacturing facilities, particularly issues related to dust emissions, effluent discharges and waste from tube manufacturing. The eco-energy efficiency consultants will identify any areas of concern. The company would need to agree to an Environmental Action Plan to be negotiated with the EBRD as part of the loan covenants.
The company has benefited from environmental and energy efficiency audit, paid for by the Dutch Government.
For business opportunities or procurement, contact the client company.
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Text of the PIP