Ilim Group has signed a four-year unsecured syndicated loan agreement for $500 million. Ilim will use the funds to finance its strategic development projects focusing on Europe and Asia, which are its priority markets, as the company says in the press release received by Lesprom Network.
The loan was arranged by Raiffeisen Bank International (RBI Group) and Intesa Sanpaolo, with Crédit Agricole also joining the syndicate on the European side. In Asia, the syndicated loan includes the four largest banks in China – Bank ICBC, Agricultural Bank of China, Bank of China and China Construction Bank – as well as Korea’s KDB Bank. The split between European and Asian sides of the syndicate is approximately 50:50.
Ilim Group CEO Ksenia Sosnina said: “Our ability to raise such a substantial amount of funding for our industry is proof of the confidence that investors and the European and Asian financial communities have in us. 2017 is the company’s landmark year and we are expecting strong operational and financial results. We are celebrating 25 years of Ilim, and 10 years of partnership with International Paper under our joint venture agreement. The fact that a Russian-American JV can achieve success and gain the trust of financial institutions in Europe and Asia is for me a striking example of business diplomacy and long-term strategy implementation, as well as the ability to pursue opportunities in a challenging environment.”
The deal was well received by the Asian and European member banks. The final amount raised significantly exceeded the target, indicating Ilim Group’s credibility in these markets. The conditions of the loan agreement allow Ilim Group to increase the credit line up to $750 million.
Ilim Group is Russia’s leading pulp and paper company, a major exporter and one of the biggest companies in the industry globally.
