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TMK Russia Bonds

Russia | Materials

Identification Code:: OP/19/0067
Total Operation Cost:: 500.000.000 USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

50.000.000 USD – 21 Jan 2020
: BSTDB Signed Amount – Signed Date

50.000.000 USD – 29 Jan 2020
: Status:
Active
Description and Purpose of the Operation:: Acquisition of Notes issued by TMK Capital S.A. as Loan Participation Notes with proceeds lent to PAO TMK Russia.
Countries of Operation:: Russia (100,00%)
Financial Product:: Loans
Sector:: Materials
Domain:: Private
Borrower/Client:: TMK Group,Russia.
Co-Financers/Participants:: N.A.
Guarantors/Sponsors:: JSC "Volzhsky Pipe Plant", PJSC "SeverskyPipe Plant", PJSC "SinarskyPipe Plant",PJSC "Taganrog Metallurgical Plant.
Developmental and Regional Cooperation Impact:: TMK Group, while being mainly a Russian based group has production entities in other countries (such as the BSTDB member country Romania) and an important international commercial presence. It supports one of the strategically important sectors of Russia oil and gas exploitation and production. Additionally, it is highly likely that in case there is demand for pipes in the Black Sea region, it will be met by this Russian producer. Given these factors, we can assume that there is a component of regional cooperation element in the operation. BSTDB was approached to act as an anchor investor therefore BSTDB’s participation is having some impact on mobilizing other external resources.
Environmental Classification and Impact:: The steel and steel products manufacturing industry is generally associated with a number of complex environmental and social (E&S) risks and impacts that may be significant, irreversible, and which may propagate beyond the site boundaries. Many of such issues however can be largely addressed through relevant mitigation measures. For the purpose of this operation it has been assigned the B+ category requiring an E&S due diligence that focuses on the general performance of the Issuer, its legal compliance, and whether its existing E&S management systems allow to effectively control the E&S risks and impacts it generates and is exposed to.
Operation Leader:: General Industries, Transport, Tourism 1
E-mail:: gitt1@bstdb.org