November 24, 2016
Segezha Group signs a five-year Euro 383.6 million syndicated facility agreement (the "Transaction"), as the company says in the press release received by Lesprom Network.
ING BANK (EURASIA) JSC, ING Bank N.V. Dublin Branch, AO Raiffeisenbank, Raiffeisen Bank International AG and Sberbank acted as mandated lead arrangers and lenders.
The funds will be used to finance Segezha Group investment programme, which includes long-term projects such as an overhaul of Segezha pulp & paper mills and construction of a new plywood factory in Kirov, Russia, as well as general corporate needs.
The Transaction structure envisages corporate financing and investment project financing tools. The loan term is potentially extendable up to 7-10 years through export credit financing to be provided with insurance coverage from European export credit agencies. Further investment needs of the Group can be financed by new lenders joining the syndicate through accordion agreement increasing the amount of the Transaction.
Segezha Group President Sergey Pomelov comments: "This new international syndicated loan is a milestone for Segezha Group. It underscores lenders’ confidence in our business and strategy. The transaction will enable the Group to ramp up production and expand its market share in strategic segments, while also balancing our revenues and liabilities structure."
Segezha Group is one of Russia's largest vertically integrated forest holding companies that performs a full cycle of logging and advanced wood processing operations.