The EBRD is considering providing a two tranche senior loan (EUR 65 million and EUR 35 million) to Kronospan OSB FLLC, Belarus, to finance construction of an oriented strand board (OSB) plant in the Mogilev region of Belarus. The OSB facility will have an annual production capacity of 500,000 m3. Tranche 1 of the loan will finance the construction starting in 2013 of Phase 1 of the Project, with production capacity of 300,000 m3. The increase of production capacity by 200,000 m3 will be constructed at a later stage and financed by the Tranche 2. EBRD funding will be used to finance capital expenditure.
The EBRD is also considering providing a senior syndicated A/B loan for a second project of the Kronospan Group. The loan of up to EUR 90 million to Kronospan Bashkortostan LLC, incorporated in Russia, to finance construction of a particleboard and melamine faced particleboard plant in Shaksha village, Ufa region, Bashkortostan Republic, Russian Federation. The plant is expected to have production capacity of 500,000 m3 of particleboard, and 15 million m2 of melamine faced particleboard per annum. EBRD funding will be used to finance capital expenditure.