Today the financial closure of the project to construct and operate the fourth phase of the Moscow Region Central Ring Road (CRR) took place. At the initiative of Road Building Company (RBC) Avtoban and the Russian Direct Investment Fund (RDIF), a syndicate of banks made up of Sberbank, Gazprombank and the Eurasian Development Bank (EDB) intends to provide RUB 31.6 bln of financing to Yugo-vostochny Magistral LLC (YVM LLC) for 15 years.
The project to construct and operate the toll-based part of the road in the Moscow Region is being carried out under a concession agreement signed by YVM LLC and State Corporation Russian Highways in June 2017. Construction of the road is scheduled to commence in April 2018.
Andrey Karasev, Senior Managing Director, Head of the Infrastructure and Transport Finance Division and Deputy Head of the Loans Department at Sberbank, said: “Carrying out infrastructure projects is a vital task for the state and one of Sberbank’s key priorities. The scale and complexity of the activities involved requires that a wide range of financial institutes join forces. For example, with the CRR the Sberbank-Gazprombank-EDB syndicate and a consortium of investors represented by Avtoban and the RDIF are performing joint work to ensure high quality financing for the project being carried out by SC Avtodvor.”
Alexey Belous, Deputy Chairman of the Management Board of Gazprombank, commented: “Cooperation between Sberbank, Gazprombank and the EDB has already proven to be effective in the project to finance the third phase of the CRR, which was also implemented by RBC Avtoban, the RDIF and the partners of the fund. This experienced syndicate’s participation in the fourth phase will enable the project risks of the concession project to be managed effectively.”
Timur Abdullakhanov, Managing Director, Head of the Transport and Infrastructure Directorate at EDB, said: “As a development institution, for us this is an exciting project because of its integrational nature – various flows are being created via intercountry corridors. In turn this will help forge reliable transport links that promote trade and the transit of goods throughout Eurasia.”
Denis Anisimov, Deputy CEO for Financial Development at RBC Avtoban, commented: “The CRR is a major project for our company and for the country as a whole. It integrates Moscow into major European corridors, helps take pressure off the Moscow Ring Road and routes heading away from the capital, and will create more than 200,000 new jobs. The participation of Sberbank, Gazprombank and the EDB will help the project to be implemented effectively and on time.”
The financial advisor of the concession owner (YVM LLC) is Investment Bureau FINIST. The legal consultants are international legal firms Freshfields Bruckhaus Deringer and Herbert Smith Freehills.
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