A syndicate of banks has given a €76mn Euler Hermes-backed loan to a Russian manufacturer.

KfW-Ipex acted as lead arranger, documentation agent and Hermes agent. BHF Bank is documentary credits processor, with Russia’s Vnesheconombank (VEB) completing the syndicate. The finance has a tenor of nine years.

The borrower is STES-Vladimir ZAO (ZAO) and the loan will be used to construct a factory producing modern foam glass, an insulating material. Much of the equipment to be used in the factory is to be sourced from German SME manufacturers.