EUR 100 million loan to Sukhoi Civil Aircraft Company (“SCAC”), a company set up by Sukhoi Design Bureau. The operation will enable SCAC to develop and manufacture a new regional passenger jet in the Russian Federation which is to be commercialised under the “Superjet 100” brand.
EBRD funds will be used to purchase equipment and to support the upgrade of the production facilities, as well as the launch of serial production and sale of the aircraft.
The transition impact of the proposed project will be derived from the following:
Setting standards for the Russian civil aviation industry
The project will support Sukhoi Civil Aircraft in a programme fully embracing international standards of product development (international cooperation between Sukhoi, and a number of leading western aerospace companies), governance (Board representation), development of civilian activities and reporting (IFRS accounting and annual audits).
Introduction of a new product
It will be an entirely new Russian-made aircraft whose design and systems meet the most recent requirements of the European, US and Russian Certification Agencies. The Superjet 100 family of aircraft is a fully marketable product designated for worldwide sales. Customer support centres will be opened in major world markets.
Transfer of skills
The project will generate a significant transfer of know-how and substantial direct foreign investments generated by the project.
The client is Sukhoi Civil Aircraft Company.
EUR 100 million loan.
USD 1.6 billion.
Screening category and justification
Screened B/1. The project involves the development, manufacturing and sales of a newly developed regional jet by financing the purchase of new equipment and upgrade of two existing plants. An Environmental Audit of the two facilities and an Environmental Analysis of the newly developed jet has been undertaken as part of the due diligence.
Due diligence undertaken and outcomes
An environmental due diligence was undertaken of the project by an international environmental consultant. This consisted of an Environmental Audit of the proposed production sites as well as an Environmental Analysis of the planned assembly operations. The Environmental Analysis also reviewed the compliance of the aircraft with international (ICAO) and EU aviation standards pertinent to aircraft safety, fuel consumption, engine emissions and noise and has shown that the certification process under Russian European and US certification bodies is underway.
The environmental audit of the production site and facilities undertaken did not identify any major issues, although possible noise impacts from aircraft engine testing will require additional studies and possible mitigating actions at the Komsomolsk-on-Amur assembly facility. An environmental action plan (EAP) has been developed to address the less significant issues at the manufacturing sites as well as the noise and certification requirements.
SCAC will be required to provide the Bank with an annual environmental report, including updates on the EAP, and notification on any material accidents of incidents.
The new aircraft will need to be comply with international (ICAO) and EU aviation standards pertinent to aircraft safety, fuel consumption, engine emissions and noise.
The Company and its production facilities will conduct its business with due regard to National and EU environmental regulations and standards.
The Company will arrange for periodic environmental audits and monitoring visits by Bank staff or appointed representatives, if and when deemed necessary.
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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