16:39 EDB: International development banks increase finance for CIS projects by 130% in Q4 2016 (review)
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EDB provides a RUB 1.95 billion loan facility for the Gulkevichski Starch Factory
Moscow, 3 April 2017. Eurasian Development Bank (EDB) and the Gulkevichski Starch Factory as a borrower signed a loan agreement to finance enhancement of the factory’s capacity and construct a new maltodextrin shop. The signatories were Maxim Korzhov, Deputy Chairman of the Management Board at EDB, and Sergei Filippov, General Director of the Gulkevichski Starch Factory.
In accordance with the agreement, EDB will extend a RUB 1.5 billion loan facility for seven years, of which RUB 1.45 billion will be used to finance the project and RUB 0.5 billion to increase the borrower’s working capital. The total project budget is RUB 1.95 billion. The borrower will provide RUB 0.45 from its own funds. The loan is intended to enhance the factory’s current corn processing capacity, reconstruct its infrastructure (water supply and disposal networks, gas supply system, rail roads) and build a new maltodextrin shop (maltodextrin is a polysaccharide enzymatically derived from starch; it is used in the food and paper industries, pharmaceuticals and cosmetics).
The project is expected to increase the Gulkevichski Starch Factory’s corn processing capacity from 320 to 350 tonnes a day. In addition, a new maltodextrin shop capable of processing 80 tonnes a day will be built.
“The project envisions to start manufacturing maltodextrin, which is currently being imported from China and Europe as it is not manufactured in the Bank’s member states, and promote import substitution. In addition, EDB experts estimate that the project’s gross output in Russia will reach some US $44.2 million a year and fiscal revenues an equivalent of US $7.6 million,” Maxim Korzhov stated.
“We appreciate the highly effective and concerted work of Eurasian Development Bank’s team. Despite the fact that the Bank is headquartered in Kazakhstan, all decisions are quick and weighted. This project (the enhancement of the Gulkevichski Starch Factory’s production capacity and the construction of a maltodextrin shop) is just the beginning of the expansion and modernisation of our plant. Our strategic programme until 2022 envisions an increase in output to 600-700 tonnes of corn a day and arranging the manufacture of some high-margin products. Almost all new products are intended for import substitution,” Sergei Filippov said.
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikista
Read more about EDB at http://eabr.org/
The Gulkevichski Starch Factory is one of Russia’s cutting-edge enterprises. Its main products are starch and syrup derived from corn. The factory was built using advanced technology and equipment and manufactures products of the highest possible quality. It was commissioned in 2002 and has already become a leader in the sector in Russia and the largest starch producer in the Southern Federal District.
Read more about the Gulkevichski Starch Factory at http://www.kzg.ru/3 April, 2017