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STLC 3, CAPEX FACILITY, RUSSIA

Russia | Industrials

Identification Code:: OP/20/0012
Total Operation Cost:: — USD
Maturity:: 96 months
Operation Status:: BSTDB Approved Amount – Approval Date

40.000.000 USD – 18 Aug 2020
: BSTDB Signed Amount – Signed Date

40.000.000 USD – 17 Dec 2020
: Status:
Active
Description and Purpose of the Operation:: Long term senior unsecured corporate loan to State Transport Leasing Company of up to USD 40 million.
Countries of Operation:: Russia (100,00%)
Financial Product:: Loans
Sector:: Industrials
Domain:: Private
Borrower/Client:: STLC 3, Russia
Co-Financers/Participants:: N/A
Guarantors/Sponsors:: N/A
Developmental and Regional Cooperation Impact:: The Operation will contribute to an increase in efficiency of passenger carries and will reduce environmental impact during the trading in designated emission control areas, as the vessels will use board fuel with a sulphur content of no more than 0.1%. Only modern technologies from outside the BSTDB area are expected to be utilized in the construction of the vessels and their engines.
Environmental Classification and Impact:: The operation is assigned Environmental and Social (E&S) Category FI/B as the BSTDB loan will be provided to a leasing company for building two specialized passenger vessels. Due to the fact that the vessels will be operated in remote, inhospitable and fragile environment, which may pose risks to human health and safety and the environment, the operation was also assigned category B. The due diligence concludes that the Operation is associated with limited E&S issues that can be readily identified and mitigated by following the internationally recognized standards and practices applied in shipbuilding and polar seafaring. STLC is recommended to strengthen its E&S management system by developing a dedicated system and integrate it in the general leasing portfolio management. This will be based on clear policy commitments and procedures by which the E&S issues will be systematically assessed. The medium and high risks transactions will have clear mitigation plans, which will be reflected in the lease agreements, and will be regularly monitored. STLC is also recommended to retain qualified staff and assign clear responsibilities.
Operation Leader:: General Industries, Transport, Tourism 1
E-mail:: gitt1@bstdb.org