Goltsblat BLP has advised the Eurasian Development Bank on acquiring a minority stake in ZAO Verkhnekamskaya Kaliynaya Kompaniya, a subsidiary of Akron
Goltsblat BLP, the Russian Practice of Berwin Leighton Paisner (BLP), has successfully completed a project providing legal support for a transaction involving acquisition by the Eurasian Development Bank of 9.10% of the shares in the authorised capital of ZAO Verkhnekamskaya Kaliynaya Kompaniya, a subsidiary of the Akron Group, which is implementing the project to develop the Talitskiy sector of the Verkhnekamsk deposit of potassium and magnesium salts in the Perm Territory. The transaction was worth about USD 100 m.
The other investors, apart from the Eurasian Development Bank, are GK Vnesheconombank and ZAO Raiffeisenbank. The total aggregate investment by the Eurasian Development Bank, GK Vnesheconombank and ZAO Raiffeisenbank in the authorised capital of ZAO Verkhnekamskaya Kaliynaya Kompaniya amounted to approximately USD 405 m. In addition, GK Vnesheconombank is to provide financing in the form of a USD 1.1 bn credit facility.
The investments raised will be used to finance construction of Talitskiy GOK.
Within the scope of the project, Goltsblat BLP advised the Eurasian Development Bank on matters of Russian and English law associated with the structuring of and preparation for the binding documents on the deal.
Anton Rogoza, Partner of the Goltsblat BLP Corporate Practice, commented on the transaction: “The given project is the first in which the Eurasian Development Bank has provided financing in the form of direct participation in the authorised capital of a company in the real sector of the economy and we were pleased to have the opportunity to assist in successful completion of the given project.”
Oleg Khokhlov, Partner in the Goltsblat BLP Banking and Finance Practice, also added: “The given transaction demonstrated yet again the role of development banks, such as the Eurasian Development Bank, in implementation of major industrial projects in Russia, as well as the increasing complexity of the tools for financing them and the importance of dialogue between international private banks, international development banks and Russian development institutions.”
The Goltsblat BLP team that worked on the given transaction consisted of: Partners Anton Rogoza and Ian Ivory, Senior Associate Vera Gorbacheva, Associate Dmitry Antipin and Junior Associate Maria Kuzmina (Corporate Practice), as well as Partners Oleg Khokhlov and Simon Alan (Banking and Finance Practice).
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at http://www.eabr.org.
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