Gazprombank, Uztransgaz and EXIAR signed a term sheet for bridge financing
Gazprombank, Uztransgaz JSC and the Russian Agency for Export Credit ,and Investment Insurance (EXIAR) signed a term sheet for the provision of short-term bridge financing in the form of a syndicated loan for up to $ 300 million. The document was executed within the framework of the St. Petersburg International Economic Forum. According to the agreements reached, 50% of the syndicated loan will be covered by the insurance of Russian Agency for Export Credit and Investment Insurance (EXIAR).
The provision of a short-term bridge loan by Gazprombank is the beginning of financing of the “Program for the modernization and improvement of the efficiency of the main gas pipeline system in the Republic of Uzbekistan in 2021-2022", which provides for the construction, reconstruction and overhaul of 545 km of gas pipelines, as well as overhaul of Gazli gas-compressor station units.
At the next stage, Gazprombank and Uztransgaz plan to arrange long-term financing on the principles of public and private partnership or project financing with the involvement of Uzbek, Russian and international financial institutions.
Part of the funds raised will be used to pay for export deliveries of Russian products and services in accordance with the requirements of EXIAR.
“We view such integrated investment projects as a tool for creating sustainable demand for Russian technology export. At the same time, the successful implementation of investment projects depends on the availability of effective financing mechanisms, since Russian contractors are forced to compete in foreign markets with global companies both in terms of technical solutions and financing. Therefore, the affordable financing available for a foreign borrower or a foreign borrower’s bank is the most popular support measure on export markets,” Nikita Gusakov, Senior Vice President of REC, General Director of EXIAR.
“Gazprombank is an old and proven partner of the Republic of Uzbekistan. The Bank financed a number of large investment projects in the oil and gas industry of the Republic. We are pleased with the development of the already established mutually beneficial cooperation and see great potential for the development of large infrastructure projects in the country, ”Alexey Matveev, Deputy Chairman of the Management Board of Gazprombank.