OAO Autocrane

Location:

Russia

Project number:

37428

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

20 Mar 2007

Status:

Completed

PSD disclosed:

16 Jan 2007

Project Description

The proposed loan will enable OJSC Autocrane (the “Company”) to finance the acquisition of other Russian heavy machinery manufacturer, to restructure the balance sheet of the Company and to finance its Capex programme. This operation will also allow the OJSC Autocrane to further strengthen its position on the Russian autocrane market and to enhance compliance of the Company with the Russian Corporate Governance Code.

Transition Impact

The transition impact potential of the Project is derived primarily from strengthening OJSC Autocrane corporate governance standard and business practices with special regard to financial and organisational transparency.

The demonstration effect of successful restructuring is another potential transition benefit of the Project. The Company continues - in the context of this transaction - its own modernisation and restructuring process aimed at fostering competitiveness and energy efficiency while at the same time seeking to turn around the companies to be acquired in the near future. An important component of the restructuring process will be the adoption and implementation of an Environmental Action Plan to support the best environmental standards within the industry.

Through the above channels the Project is expected to set good examples for other companies in the sector and the region in need of further modernisation and improvements of their corporate governance and business standards.

 

The Client

Open Joint Stock Company “Autocrane” is a leading Russian machine building plant producing mobile cranes and slewing rings.

EBRD Finance

The EBRD will provide a senior loan for an amount of up to USD 40 mln to OJSC Autocrane, of which USD 10 million will be syndicated to commercial bank(s).

Project Cost

Total project will amount to approximately USD 40 million. 

Environmental Impact

The project has been screened B/1 requiring an environmental audit of the Company's environmental policies, procedures and practices and site reviews of the production facilities. An independent consultant carried out this work and recommended to implement a time-bound Environmental Action Plan ("EAP"), which will be covenanted in the legal agreements. The Company will be required to provide the Bank with an annual environmental report on compliance status and the implementation of the EAP.

Technical Cooperation

None.

Company Contact

OJSC Autocrane, Ivanovo, str. Nekrasova, 61

Website: www.cranes.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.