COBALT acted as joint counsel for Viru Keemia Grupp

COBALT acted as joint counsel for Viru Keemia Grupp AS, a leading Estonian oil shale mining consortium, and a syndicate of Estonian and Scandinavian banks in the entrance of the European Bank for Reconstruction and Development (EBRD) into the existing syndicated financing arrangements of Viru Keemia Grupp.

The financing involves the largest syndicated financing arrangement ever to be provided within Estonia with the total amount of around 450,000,000 EUR. The facility provided by EBRD is directed to finance an environmental upgrade and energy efficiency improvements for its operations. The funding will support a major investment programme by the company aimed at increasing its capacity to produce liquid fuels from oil shale through the construction of two oil production facilities.

COBALT as joint counsel negotiated the loan documentation as well as intercreditor arrangements between the existing syndicate of banks and EBRD. Allen & Overy London office assisted COBALT Estonia on English law aspects of the transaction. COBALT Estonia team consisted of partner Marina Tolmatshova and associate Kristjan Kotkas.