EDB sign loan agreement with European banks to finance technological equipment

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Eurasian Development Bank (EDB) has signed a loan documentation with a group of European banks, including Societe Generale Corporate & Investment Banking, IKB Deutsche Industriebank AG, and AKA Ausfuhrkredit-Gesellschaft m.b.H. for a loan of around Euro 107.8 million with maturity up to 10 years. These funds are raised by the EDB for the purposes of targeted financing of technological equipment to be purchased from Danieli & C. Officine Meccaniche S.p.A. and its German subsidiary by Belarusian Steel Works OJSC [open joint-stock company] (BMZ), the management company of Belarusian Metallurgical Company holding, for construction of a wire rod mill construction in the town of Zhlobin (Belarus). Wire rods are needed for the construction of bridges, buildings and houses. The financing is provided against guarantees of SACE, the Italian public export credit agency, and Euler Hermes Deutschland AG, a German insurance company acting for and on behalf of the Federal Republic of Germany. It is the first time EDB makes such a complex multi-sided deal, simultaneously involving a pool of Western banks, as well as Export Credit and Insurance Agencies.

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