OREANDA-NEWS. November 21, 2007. Within the framework of the project related to MLT financing of import of Italian machinery, TransCapitalBank (TCB) arranged financing of the deliveries of steel manufactoring equipment (continuous casting machine and rolling mill) amounting to approximately EUR 20 mln, the bank's press service reports. The facility was obtained for the tenor of up to 1,5 years from the date of documentary L/C issued by TCB in f/o STG Group S.p.A., Italy, with an option to extend the financing period for another 1.5 years.

The deliveries of the equipment are to be made into the Rostov region of Russia. Commerzbank AG acts as nominated and confirming bank under the L/C.

This transaction is notable for its uncommon structure. The total volume of risks was syndicated between Commerzbank AG and Swiss Re (Switzerland) - one of the world’s leading reinsurers. European Bank for Reconstruction and Development (EBRD) also provided the confirming bank with a payment guarantee under its Trade Facilitation Program in order to partially share about 25% of risks. It should be mentioned that this project was implemented without any ECAs' involvement.

In July 2007, within this project TCB organized a 3-year financing of the down-payment portion for EUR 7 mln with the participation of the ABN AMRO Bank and EBRD.

Thus, TCB continues arranging trade finance transactions aimed to support Russian companies' investment projects which concern the modernisation of their own capital funds and creation of new manufacturings.