OREANDA-NEWS. The EBRD has raised EUR 123 million in long-term funding, including a sizable syndicated loan, for Russia's leading manufacturer of pipeline valves to complete and modernize two plants belonging to Oil and Gas Systems in the country's Tula region.

The EBRD, which is the lender of record for the full amount, will provide EUR 73 million as an A loan with an eight-year maturity. The remaining EUR 50 million is being made available by Nordea Bank as a syndicated B loan with a maturity of seven-and-a-half years.

The loans signed today in Moscow will fund the completion of a greenfield hot press stamping plant near the town of Sukhodol and modernization of the foundry shop in the nearby Alexin plant.

The new hot press plant will secure a stable supply of half-body casings for the production of pipeline valves and meet the growing demand for large stamped parts used in various industries in Russia, including energy and chemicals.

“The EBRD is proud to continue its support to a regional privately owned company that is operating to world class standards. This is an example of Russian manufacturing at its best,” said Lindsay Forbes, EBRD Director for Industry, Commerce and Agribusiness in Russia.

Christopher Mackenzie, the Chairman of the Supervisory Board of Oil and Gas Systems group, said: “We appreciate the EBRD's continued support for a project that allows our company to modernize its manufacturing facilities in Tula and we look forward to further successful cooperation with EBRD in the future.”