Ust-Luga Company takes out a $100-mln loan from EDB
Ust-Luga Company OJSC has signed an agreement with the Eurasian Development Bank for taking out a $100-mln loan. The decision was taken by an extraordinary meeting of the company’s shareholders, Ust-Luga Company reports. The bank line is opened for 9 years from the date the agreement was signed. Grace period for a principal debt is 18 months from the first tranche of $500,000. LIBOR-based interest payable quarterly makes 8.5% per year. The money raised will be used to finance the territory development for construction of Ust-Luga multipurpose Ust-Luga Sea Merchant Port as well as for construction of the port terminal, storage premises and other facilities, acquisition and installation of production machinery.
ОАО Ust-Luga Company JSC was established in 1992 for implementation of a project on construction of Russia’s new commercial seaport in the Luga Bay of the Gulf of Finland. Ust-Luga Company JSC has several lines of activity related to creation of the largest in Russia multipurpose commercial seaport Ust-Luga and complex social-economic development of the territories adjacent to the port.
Ust-Luga port is situated practically at the border of the Russian Federation and the European Union. The deep water area of the port (16 m) together with the short ship channel (3.7 km) make Ust-Luga port the only Russian port on the Baltic Sea capable of admitting dry-cargo vessels with the deadweight of up to 75,000 tonnes and liquid cargo carriers with the deadweight of up to 120,000 tonnes. The second ship channel providing roundabout ship traffic will be built by 2010. By 2010 the cargo turnover of Ust-Luga port is expected to amount to 50 mln tonnes.
The Eurasian Development Bank ("EDB") is an international financial institution founded in order to foster economic growth and integration processes in the Eurasian region.
The Bank was founded by intergovernmental agreement that was signed in January 2006 by the Presidents of the Russian Federation and the Republic of Kazakhstan. The initiative for establishing the Bank came from the two Presidents.
The Bank’s charter capital is US$1.5 billion.