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INTERNATIONAL SUGAR CORPORATION to receive 20 bln rubles for construction of a sugar plant in the Don region Press source: RBC

INTERNATIONAL SUGAR CORPORATION (ISC) has settled the issue of financing of a sugar plant construction in Rostov Region. Funds are to be provided by Unvia Trading Limited against the guarantees of Vnesheconombank.
INTERNATIONAL SUGAR CORPORATION General Director Peter Panteleev informed RBC-Yug News Agency that the cost of the sugar plant’s construction in the Tselinsky district of Rostov Region currently comes out at 20 billion rubles. Basic funds essential for the project implementation will be provided by foreign investor Unvia Trading Limited against the guarantees of Vnesheconombank.
“After a great amount of work performed in coordination with the Vnesheconombank specialists, we have developed a scheme of financing for our project. Most importantly, we are obtaining the credit line in rubles. Thanks to the bank’s counseling, we managed to escape currency risks and it helped us greatly in negotiations with our foreign partner,”- said Peter Panteleev. The company has not yet disclosed the terms of the agreement on project financing.
According to Peter Panteleev, these days INTERNATIONAL SUGAR CORPORATION is finalizing design specifications and estimates and intends to receive a favourable conclusion of state expert examination on the project. Actual works on plant construction are expected to start in three months. Plant start-up is preliminarily scheduled for August 2017.
“We receive support not only from Vnesheconombank but also from the Government of Rostov Region. We work in close contact with regional authorities, and I can say that engineering works for water pipe-line construction both for the Tselinsky district and our plant are about to be completed. There has never been water before but today expert examination is in progress, and waterline will be launched next year,”- added Mr. Panteleev.
As previously reported, the agreement on sugar plant construction in Rostov Region was signed between INTERNATIONAL SUGAR CORPORATION and the government of the region at an investment forum in Sochi in 2012. The project initiator was ISC in cooperation with SUCDEN GROUP (France). ISC has already acquired land lots with total area of 228 ha in the Tselinsky district for a sugar plant construction.
Estimated processing capacity of the plant will come up to 12 thousand tons of sugar beet per day. The plant will produce 250 thousand tons of sugar and will work predominantly on local raw materials. In future the plant capacity may be increased. Plant start-up was formerly planned for August 2016. Before currency fluctuations and alterations in the economic situation, the project cost was about 12,5 bln rubles.

INTERNATIONAL SUGAR CORPORATION to receive 20 bln rubles for construction of a sugar plant in the Don region