We advised the European Bank for Reconstruction and Development (EBRD) on provision of a more than EUR 200 million financing package to Belarusian subsidiaries of the Kronospan group. EUR 40 million out of this package will be syndicated to commercial banks.
Kronospan group is the market leader in the wood-based panel sector. It manufactures wood-based panel products at over 40 sites and has 16 distribution centres in 30 countries, including almost all European countries, the USA and China.
The first long-term senior loan of up to EUR 124.2 million is provided to Kronospan FLLC to finance an infrastructure upgrade at its plant in Smorgon, creation of a furniture production cluster and a multifunctional training and exhibition complex, as well as to restructure the company’s balance sheet. The second long-term senior loan of up to EUR 76.7 million is extended to Kronospan OSB FLLC to finance a capacity expansion programme and infrastructure upgrade at its plant in Mogilev, as well as to refinance the company’s existing debt to EBRD.
Partner Kiryl Apanasevich, senior associate Ann Laevskaya, associates Artem Melnikovich and Artem Semchik advised the lender on Belarusian law aspects of this financing.