Oil and Gas Systems raises 123 mln euro syndicated loan
MOSCOW. Feb 26 (Interfax) - Oil and Gas Systems, Russia's leading manufacturer of pipeline valves, has raised a 123 million euro syndicated loan to complete and modernize two plants in Russia's Tula region, the European Bank for Reconstruction and Development (EBRD) said in a statement.
The EBRD will lend the company 73 million euro as an A loan with an eight-year maturity, the EBRD said, adding that the remaining 50 million euro was being made available by Nordea Bank as a syndicated B loan with a maturity of 7.5 years.
The documentation for the loan was signed in Moscow on February 26.
The loans will fund the completion of Spetstyazhmash, a greenfield hot press stamping plant near the town of Sukhodol in the Tula region opened on February 4, as well as the modernization of a foundry shop in the nearby Alexin plant of CJSC Tyazhpromarmatura.
The new hot press plant will secure a stable supply of half-body casings for the production of pipeline valves with a mass of between 600 kilograms to 20 tonnes. The plant will also meet the growing demand for large stamped parts used in various industries in Russia, including energy and chemicals, the EBRD said.
The Alexin plant is one of the oldest machine building enterprises in Russia, specializing in the design and production of pipeline valves for the gas, oil, chemical and power sectors.
Spetstyazhmash and the Alexin plant are part of Oil and Gas Systems, which brings together Russia's largest machine-building enterprises. The group also includes divisions for designing equipment for fuel and energy enterprises, as well as the transportation sector.