The EBRD will provide additional debt financing to News Outdoor Rus OOO, the largest out-of-home advertising media operator in Russia, by increasing its existing A/B senior secured loan by up to US$ 65 million. The loan will provide acquisition funding and facilitate the expansion of the company’s product and geographic coverage.
The proposed project will build on the original financing of the company and will support further development of an important segment of the Russian advertising infrastructure, as advertising promotes competition, access to information, and is a key element of any modern economy. The project will also facilitate further restructuring of the highly fragmented Russian outdoor advertising industry, which is dominated by small and inefficient local companies and will enable skills transfer throughout the outdoor advertising supply chain and nationwide.
The project will have a high demonstration effect. As the EBRD provides debt financing to the leading company in the industry, which previously relied exclusively on its internally generated cash and shareholder funding to meet its financing needs, it will send a signal of the Bank’s confidence in the company and Russia’s advertising market.
News Outdoor Rus OOO, a limited liability company organised in the Russian Federation, is the largest “out-of-home” advertising media operator in Russia offering billboards, street furniture, transit and point-of-sale advertising.
The proposed financing consists of an A Loan for the Bank's own account in the amount of up to US$ 32 million with the participant banks providing the balance.
The total project costs are estimated at US$ 81 million (€ 66 million). The balance will be financed by the existing cash balances of the company and the outstanding amount under the existing loan facility.
Screened C/1. There are unlikely to be any significant environmental issues associated with this project. Environmental due diligence conducted for the existing project (2003) confirmed that, apart from standard land use planning requirements, permits and the planning and installation of advertising units, there are no environmental issues associated with this business. The Company also confirmed that News Outdoor Rus is in full compliance with the Advertising Committee and relevant municipal bodies' specifications and standards associated with the Russian outdoor advertising industry. The Company is required to continue to comply with Russian and EU environmental, health and safety standards and requirements and local and national public consultation requirements as well as to submit the Bank an annual environmental report.
Mr. Salim Tharani
News Outdoor Russia
PO Box 86, 80 Leningradsky prospect
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