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

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.

Additional details

1. The Russian project title is комплекс по производству пиломатериалов в Хабаровском крае. 2. Some official sources identify the face value of the VEB loan to Arkaim Joint Venture LLC as EUR 277 million. This issue merits further investigation

Number of official sources

3

Number of total sources

9