21 May 2020
Clifford Chance advises Far East and Arctic Development Fund on the RUB 5.7 billion facility for Polymetal
Clifford Chance has advised the Far East and Arctic Development Fund (the “Fund”) on a 10-year loan of RUB 5.7 billion (US$ 80 million at the current exchange rate) for Amur hydrometallurgical plant, a subsidiary of Polymetal.
The proceeds will be used to partially finance construction of the second stage of the Amursk pressure oxidation plant (POX-2) in 2020-2021. POX-2 capital expenditures until the end of 2020 are estimated at approximately US$ 100 million, while the total investments remaining until the end of the construction are expected to amount to US$ 312 million. The loan has the tenor of 10 years and a 5% fixed rate. The project plays an important role in the development of the entire Far East region in Russia.
JSC “Far East and Arctic Development Fund” is a subsidiary of the State Corporation “VEB.RF” (Bank for Development and Foreign Economic Affairs). The Fund facilitates the inflow of investments by providing preferential and long-term financing for prioritized investment projects. The total assets of the Fund amount to RUB 80.8 billion. The Fund’s portfolio comprises 17 projects in various industries with total value of RUB 488 billion.
The Clifford Chance team advising on the matter included banking & finance partner Vladimir Barbolin, corporate counsel and head of construction practice Ella Omelchenko, and senior associates Elena Dmitrieva and Arina Skrebkova.