OREANDA-NEWS. January 20, 2012. Sviaz-Bank has set a limit on an overdraft loan of up to 1.8 billion rubles it will provide as a cash-pooling service to enterprises integrated into the EuroSibEnergo Group. The loan will be drawn down for a year, and the loan agreement between the Bank and Group can be renewed, reported the press-centre of Sviaz-Bank.

The cash-pooling service has been developed for major customers structured as holding companies, like the EuroSibEnergo Group, in an effort to cut borrowing costs significantly, optimize interest costs and earnings, and make the Group’s liquidity management more efficient, which all reduces considerably both parties’ costs in time and funds. Sviaz-Bank first introduced this service in 2010.

“We have been cooperating successfully with the EuroSibEnergo Group, the largest private power company in Russia and the principal electric power producer in Siberia, for several years already. The latest and newest financial product from the Bank will enable the Group to carry on sustainable development and also cut borrowing costs,” said Sergei Volokhov, Vice Chairman of Sviaz-Bank’s Management Board.

“Sviaz-Bank is our longstanding reliable partner. The funds the company is borrowing within the limit set by the Bank will be used to maintain current operations, such as increasing our working capital and covering our cash deficits. The loan will enable the Group to lower output costs by managing financial flows more efficiently, which is a significant advantage in this period of economic instability in the world,” said Vyacheslav Solomin, First Deputy General Director and Chief Financial Officer of EuroSibEnergo OJSC.

EuroSibEnergo (http://www.eurosib.ru/) is Russia’s largest electric power company owned by the En+ Group. EuroSibEnergo controls 18 electric power plants having a total installed capacity of 19.5 GW, over 15 GW of which is owned by the giant hydroelectric power plants of the Angara-Yenisei chain (Krasnoyarsk, Bratsk, Ust-Ilim, and Irkutsk), coal fields with around 1.2 billion tons of coal in total resources, and marketing and engineering companies. In 2010, EuroSibEnergo’s power plants generated over 87 billion kWh of electric power, or some 9% of the total power produced in Russia.