CDB provides $361.5 million loan for Timber Processing and Sawn Timber Integrated Facility Construction Project

Project narrative

On November 24, 2010, China Development Bank (CDB) and Vnesheconombank (VEB) — a Russian government-owned development bank — signed a $361.5 million loan agreement for the Timber Processing and Sawn Timber Integrated Facility Construction Project. This loan carried a maturity of 11 years. The grace period and interest rate of the loan are unknown. Vnesheconombank used the proceeds of the loan to on-lend to a special purpose vehicle called Arkaim Joint Venture LLC (or ЛПК "Аркаим"). The project, which cost EUR 414.7 million in total, involved the construction of a timber processing integrated facility to manufacture chipboards and sawn timber in the Vanino district of the Khabarovsk Territory. Upon completion, it was expected that this facility would achieve an annual timber processing capacity of up to 1.1 million cubic meters. The project was officially completed on September 5, 2017.