denotes premium content | Sep 3 2010 
News
posted 26 Jun 2009
Deal news
China Development Bank finalises Russian deals
China Development Bank has secured a series of deals in Russia intended to underpin the exports of major Chinese corporates.
The biggest of the deals was a $1bn framework credit agreement with Russian development bank Vnesheconombank (VEB) to “promote cooperation between the two parties in raising funds to finance investment projects to be implemented on the territory of the Russian Federation in partnership with Chinese companies,” according to a statement.
It was signed at the same time as a $310m credit agreement between the two banks to finance the construction of a cement factory in the city of Slantsy, in the Leningrad region. The project involves setting up a full-cycle production unit with a total capacity of 1.86 million metric tonnes of cement per year. The plant is being built by LSR Group.
China Development Bank was also behind a $300m credit line for pan-Russian mobile phone operator MegaFon to help it finance the purchase of Huawei Technologies’ telecommunications equipment. MegaFon, Russia’s third-largest operator covering the whole of the Russian Federation, will be paying a margin of 270 basis points over Libor on a tenor of seven years.
