Sveza Holdings has mandated Commerzbank, Standard Bank Plc and VTB Bank Europe as initial mandated lead arrangers, underwriters and bookrunners to arrange a €200mn five-year structured trade-related secured finance facility.
In addition to the initial MLAs, JSC International Moscow Bank joined the transaction as mandated lead arranger.
The facility has a tenor of five years and will amortise after a one-year grace period. It carries a margin of 2.95% per year above Euribor and will be repaid from the borrower’s own funds and secured by proceeds generated from the export of products produced by its subsidiaries.
The facility will be utilised by the borrower to refinance the acquisition its shareholders” 100% interest in Perm Plywood Company (PFK) and for general corporate purposes.
The facility has been syndicated to a limited number of European investors and banks.
Further commitments on offer were: arrangers with €20mn; co-arrangers with €15mn; and lead managers with €10mn.
Final allocations were:
Initial MLAs Commerzbank with €25mn; Standard Bank Plc and VTB Europe with €20mn.
MLA International Moscow Bank with €50mn.
Arrangers BNP Paribas, Credit Europe, Erste Bank, Garantibank International, KfW, and RZB with €9.5mn.
Co-arrangers Anglo-Romanian Bank and Investkredit with €7.5mn.
Senior lead managers Banque Cantonale de Vaudoise with €5mn and Raiffeisenlandesbank Niedersterreich and VTB (Deutschland) with €4mn.
Sveza Group was established in 1997 on the basis of a single plant. At present the company owns three plants producing plywood and chipboard. Sveza is the largest manufacturer of plywood in Russia, and the second largest in Europe, controlling 9% of the world and 15% of the Russian birch plywood market.
Sveza Group is owned by the shareholders of Severstal, the second largest Russian ferrous metallurgical company.