Belarusbank raises funds to upgrade Minsks HPP No.3

Belarusbank is taking out a syndicated loan in the Russian Federation. The corresponding loan agreement was signed in Moscow on September 1, 2017. On behalf of the bank the agreement was signed by Deputy Chairman of the Board Viktar Perepelitsa.

The funding will enable the implementation of the modernization project of Minsk’s Heat Power Plant No.3, which stipulates the replacement of the retired capacity (14 MPa, phase 1). The corresponding construction agreement was signed by RUE Minskenergo and RUE Belenergostroi. The contractual party on the Russian side is CJSC Ural Turbine Works.

The borrowed funds in the amount of over $90 million in the euro equivalent is coming from two Russian banks, namely Eximbank of Russia and Promsvyazbank (both members of the Russian Export Center Group), with coverage provided by the Russian Agency for Export Credit and Investment Insurance (also a member of the Russian Export Center Group).  

The parties to the transaction emphasize its large scale and unprecedented character. The borrowed funds will not only allow for the supplies of high-tech products of Ural Turbine Works, but also compensate local costs incurred by general contractor RUE Belenergostroi.

“The joint implementation of this investment project together with Russian colleagues is extremely important for the Belarusian economy”, said Viktar Perepelitsa. We regard it as another milestone in cooperation with both RUE Minskenergo, which is our client, and Russian banks”, he added.

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