ING in Russia

ING in Russia

Segezha Group ("Group", a subsidiary of Sistema PJSFC), a leading vertically integrated forest industry holding, announced the signing of a five-year EUR 383.6m syndicated facility agreement.

Segezha Group ("Group", a subsidiary of Sistema PJSFC), a leading vertically integrated forest industry holding, announced the signing of a five-year EUR 383.6m syndicated facility agreement.

ING BANK (EURASIA) JSC acted as a coordinator and documentation agent, as well as one of mandated lead arrangers and lenders. ING Bank N.V. also acted as one of mandated lead arrangers and lenders, as well as facility agent.

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, 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.

"This financing is an important step to support the Group’s growth and strengthen its market positioning. We are pleased to contribute to the implementation of the Group's strategic goals", noted ING BANK (EURASIA) JSC CEO Mikhail Chaikin. "The structure and potential of the loan represent the first Russian forest-industry transaction of the scale for years. It reconfirms the banks’ interest in the Group", - he added.

http://segezha-group.com/