Translated version of this PSD: Russian
The EBRD is considering a co-investment with RUSNANO to finance a new float glass plant in Ramenskoye in the Russian Federation, which will also have the capacity to produce coated energy efficient glass for the Russian market, as well as to provide funding for refinancing of the existing debt of Pilkington Glass LLC.
The Project will contribute to energy efficiency of buildings and the expansion of the market for new energy-saving products in Russia.
The Project transition impact will derive from the following key areas:
(i) contributing to the adoption and implementation of energy performance regulations of buildings.
(ii) supporting the expansion of the market for new energy-saving products.
(iii) successful integration of the operations of Pilkington Glass LLC and the StiS Group of Companies. StiS is the leading manufacturer of insulated glass units in Russia
The investee, Pilkington Nederland No. 6 BV, will become the only integrated flat glass business in Russia combining float glass manufacturing facilities with downstream processing activities. This entity beneficially owns Pilkington Glass LLC, which will be the borrower under the proposed debt financing.
The EBRD financing package is a combination of equity and debt and predominantly earmarked for new physical capital expenditures.
Total project costs of EUR 295 million are a combination of refinancing and new capital expenditures.
Environmental classification and rationale
The Project is categorised B. Pilkington Glass LLC is an existing client of the Bank and has a good record of environmental and social performance.
As part of the Project, the Bank has undertaken an Environmental and Social Due Diligence (ESDD) of both existing Pilkington Russia and STiS Group assets that will form the new joint venture as well as a review of the designs for the second float line. The ESDD has confirmed that the project and associated operations are structured to meet the Bank's Performance Requirements (PRs). The primary focus of ESDD has been on corporate management systems for the merged entity, as well as whether the new line is designed to meet EU Industrial Emission Directive (IED) Best Available Techniques (BAT) requirements. The ESDD has confirmed that Pilkington Glass LLC and the new merged entity have the institutional capacity to fully implement the Bank’s Performance Requirements.
As a result of the ESDD the Company has agreed to include electrostatic precipitators (ESPs) in the designs of the new float line in accordance with EU IPPC and IED BAT requirements. The ESPs will be installed within 4 years of commissioning of the new installation. Prior to the involvement of the Bank, the Company had not considered ESPs on the second line, as ESPs are not required under Russian Federal law, and air modelling studies did not indicate any significant human health risks. The ESPs will further reduce emissions as well as water vapour plume, which can limit the visual impact of the plant. The inclusion of ESPs on the new as well as additional monitoring systems is included in the Environmental and Social Action Plan (ESAP).
The Bank will monitor the implementation of the ESAP and undertake regular monitoring of the Project.
Mr. Paul Ravenscroft
Head of Mergers & Acquisitions, NSG Group, Prescot Road, St. Helens Merseyside, WA 10 3TT.
Tel. +44 (0) 1744 692182
Fax +44 (0) 1744 613329
For business opportunities or procurement, contact the client company.
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