Vyborg PXF funds wood pellet plant

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28 January 2010

Russian cellulose producer Vyborgskaya Cellulose (Vyborg) is using a pre-export financing to build the world's largest wood pellet plant.

Russian cellulose producer Vyborgskaya Cellulose (Vyborg) is using a pre-export financing to build the world's largest wood pellet plant.

VTB has already provided Eu30 million to the transaction, which has been drawn down by Vyborg this month, but plans to increase the size of loan by a further Eu10 million through syndication among two to three additional financial institutions.

The deal is structured as a three-year pre-export financing. Vyborg has the option of extending the facility to a four-year...

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Poll

Gazpromneft stunned the market this week when it was revealed pricing for their five-year $1 billion pre-export financing was rumoured to be just above 300 basis points over Libor. Is the deal likely to be a syndication success?

Yes - this seems like a sensible pricing benchmark, why not?

12%

No - are you crazy? These prices are ridiculous. What were these banks thinking?

38%

Yes - but for all the wrong reasons. A lack of other deals in the market, and the promise of future business with Gazpromneft will make it hard to ignore but don’t expect many to take up big tickets with this deal. There are much better deals out there.

50%