# Polymetal International 10-year loan with Far East and Arctic Development Fund

- Link: https://www.directorstalkinterviews.com/polymetal-international-10-year-loan-with-far-east-and-arctic-development-fund/412820304
- Published: 2020-05-12T07:08:59+01:00
- Author: Amilia Stone

**Polymetal International PLC** (LON:POLY) has today announced that it has agreed
a 10-year loan of RUB 5.7 billion (US$ 77 million at the current exchange rate) 
at 5% fixed rate with the Far East and Arctic Development Fund.

The proceeds will be used to partially finance construction of the second stage 
of the Amursk pressure oxidation plant (POX-2) in 2020-2021. POX-2 capital expenditures
until the end of 2020 are estimated at approximately US$ 100 million, while the 
total investments remaining until the end of the construction are expected to amount
to US$ 312 million. The loan has the tenor of 10 years and repayable in equal quarterly
installments from December 2023 till May 2030. POX-2 full ramp-up is scheduled for
Q4 2023.

POX-2 is also a resident of the Territory of the Advanced Social and Economic Development
under an investment activity agreement with the Far East Development Corporation(“
FEDC”), which provides a number of tax and other benefits.

**About the Fund**

JSC “Far East and Arctic Development Fund” is a subsidiary of the State Corporation“
VEB.RF” (Bank for Development and Foreign Economic Affairs). The Fund facilitates
the inflow of investments by providing preferential and long-term financing for 
prioritized investment projects. The total assets of the Fund amount to RUB 80.8
billion. The Fund’s portfolio comprises 17 projects in various industries with total
value of RUB 488 billion.

**About FEDC**

JSC “Far East Development Corporation” is a managing company of the territories 
of the advanced social and economic development within the Far Eastern Federal District
and the Free Port of Vladivostok.

> “We welcome the Fund’s involvement in the POX-2 project as a significant financing
> partner. Our project is important for the entire Far East region, and we are pleased
> to secure long-term low-cost financing with a smooth repayment profile”, **said
> Vitaly Nesis, Group CEO of Polymetal** **International**. “Besides that, I would
> like to highlight the administrative support from FEDC which is essential for 
> the project”.

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