Sberbank, VEB.Of the Russian Federation and a Group of UMMC signed a basic indicative terms of financing for the project development Garbalinski polymetallic deposits in the Altai region and reconstruction of the Rubtsovsky concentrating factory to increase output to 1.5 million tonnes of ore per year in accordance with the principles of the mechanism of the "Factory project financing."
the Total cost of the project is about 38 billion rubles, of which 24 billion rubles is planned to Finance at the expense of credit funds of the participants of the syndicate. Credit funds of financial institutions can be used to Finance costs within the project budget, including acquisition of property and equipment payment of construction works.
Andrey Kozitsyn, General Director of "UMMC":
"the Signing of this document represents a milestone for our company. Curbalance field is one of the richest in Russia in zinc content. The reserves are estimated at 2.3 million tonnes of zinc. The realization of this ambitious project will allow to keep and strengthen its leading position in UMMC non-ferrous metallurgy.
We appreciate the interest from the Bank.Russia – a key Institute in the development of Russia to our investment project with one of our largest creditors."
Olga Kharlamov, Vice-President of Sberbank, Director of Department of crediting of key clients:
"Sberbank is considering its participation in financing major projects in the mining industry in the country as a basis for creating new export capacity and strengthen Russia's role in global economic relations. Curbalance is a very promising field, which could significantly change the balance of power in the export of zinc, copper, lead, gold and silver. I'm sure that the participation of the two largest development institutions of the Russian Federation in this project will allow the Group UMMC use of the latest technology and then development Garbalinski mine will not only become one of the largest, but also one of the most high-tech initiatives in the mining industry".
Sergei Evdokimov, senior Vice President of VEB.Russia:
"Factory project financing, in our opinion, is the catalyst of development of Russian market of syndicated lending and project Finance. The interest in this instrument from potential investors and lenders is increasing. VEB.Of the Russian Federation as operator of the factory not only produces the selection of investment projects for participation in the program and is one of the members of the syndicate, but also necessarily acts as credit Manager. If necessary the web.Russia can provide trenches in the syndicate to pay interest on the investment phase of the project to other members of the syndicate, and open backed tranches in case of exceeding the project budget".
Garbalinski mine is within Zmeinogorsky district of Altai Krai and will develop the largest Deposit of polymetallic ores in the Russian underground. Reserves are 24 million tons of ore with a high content of zinc, copper, lead, gold and serebra.
