RusForest receives first US$5M of US$10.5M loan from Sberbank, expects second tranche in April
February 22, 2012
– RusForest AB (publ) ("RusForest") has been granted a long-term investment loan in the amount of USD 10.5 million from the East-Siberian Branch of Sberbank. Today RusForest received the first tranche of USD 5 million.
The process of finalizing the credit terms and registering the necessary collateral has been on-going since December. The loan matures in seven years and is granted at market terms. The second tranche of the loan is expected to be paid out in April 2012.
About RusForest AB (publ)
RusForest is forestry and sawmilling company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long term forest leases with an annual allowable cut of approximately 3.6 million m³, and utilizes these resources to produce a wide range of sawnwood products. Eastern Siberia is renowned for its pine and larch of exceptional quality, while the Arkhangelsk Region in northwest Russia has high quality spruce and pine forests similar to those found in northern Sweden.
RusForest's goal is to develop into a leading independent integrated forestry and sawmilling company in Russia with an annual harvesting of 2.7 to 2.9 million m3. The Group's total sawmilling capacity, which is currently approximately 350,000 m3, is expected to, following completion of on-going investments; gradually increase to 500,000 to 550,000 m3 of sawnwood. There is significant potential (of up to 800,000 to 850,000 m3 of sawnwood) within the maximum allowable harvesting.
RusForest AB's Certified Adviser on First North is Pareto Öhman AB.