Assisting international banks and funds in provision of loans and green-field projects implementation in Belarus
Assisting international banks and funds in provision of loans and green-field projects implementation in Belarus
Capital Markets
2012 — 01 — 03

COBALT assisted the European Bank for Reconstruction and Development (EBRD) and Landesbank Baden-Württemberg (senior lenders), as well as Swedfund International AB (subordinated lender) in provision of loans of EUR 53 million to IOOO VMG Industry, a Belarusian foreign limited liability company.

Loans were provided in order to finance the construction, equipment and operation. Banks also provided a working capital for a EUR 76 million green-field wood processing complex to be located in the Free Economic Zone Mogilev, Republic of Belarus.

In total nine jurisdictions were involved in the project (Lithuania, Belarus, United Kingdom, Germany, Sweden, Ireland, the Netherlands, Cyprus and Switzerland), mainly due to complexity of security given and project agreements signed. The project was led and coordinated by office in Vilnius, with the close assistance of the Belarus Help Desk.

The project was very challenging and required creativity in offering and implementing pioneering mechanics of the transaction. It lasted for more than 1.5 years. Due to the diversity of the parties and applicable laws involved, the project required utmost organisational skills and complete commitment.