For the purposes of the investment project “Construction of the textile grade polyethylene terephthalate production facility in the Ivanovo Region”, Vnesheconombank and JSC Ivanovo Polyester Complex signed a liaison agreement during the Russian Investment Forum in Sochi.
The document was signed by Vnesheconombank Chairman Sergey Gorkov and General Director of JSC Ivanovo Polyester Complex Sergey Nikolaev, in the presence of Governor of the Ivanovo Region Pavel Konkov.
Sergey Gorkov stressed that “the launch of the project was made possible, in particular, due to the active involvement of the Governor of the Ivanovo Region. The construction of the plant will facilitate the creation of a new sub-branch in Russia, as outlined in the VEB strategy. This sophisticated project is of particular importance for the Bank”.
The head of the region, in his turn, expressed appreciation to Chairman of Vnesheconombank Sergey Gorkov for his efforts in supporting the project. “VEB takes over coordinator duties, seeking consistent solutions with many of those involved in the project financing. The State Corporation is highly responsible for the result. The synthetic fiber plant is the largest project of the Ivanovo Region and purposefully strategic for the Russian textile industry. Moreover, this project can be considered one of the most successful in the framework of public and private partnership”.
The parties agreed to undertake joint actions focused on the implementation of the project. The project over 25 billion rubles worth, including costs of attracted financing, is being implemented in the monotown of Vichuga, the Ivanovo Region, and involves the creation of a polyester fiber production plant (capacity 175 thousand tons per year), and textile grade PET chip production plant (capacity 30 thousand tons per year).
The project has successfully undergone the necessary expert appraisals, such as the State Environmental Review and an independent environmental impact assessment according to the state standards of the Russian Federation and IFC and OECD international standards. The purpose of the project lies in the localization of high-quality polymeric fiber production and the use of import-substituting raw materials for the textile and light industries in the Russian Federation, as well as the creation of a manufacturing chain of technical textile for the growing domestic market.
Vnesheconombank’s involvement in the financing and construction of the plant was approved at the meeting of the Bank’s Supervisory Board in December 2016.
Based on the agreement and with a view to financing the project, Vnesheconombank intends to attract the related funding under the coverage of European export credit agencies to the amount of approx.. EUR 280 million. In its turn, the initiator of the project, JSC Ivanovo Polyester Complex intends to provide equity investment to the amount of more than 5 billion rubles, and to elaborate on the additional measures of state support for the project. For the purposes of the project, the loan agreements are to be signed by the parties in April this year.