Chinese banks to provide the Russian state corporation with a 10-billion-yuan syndicated loan

Almaty. September 2. Silkroadnews – Vnesheconombank (VEB) will receive a 10-billion-yuan (around $1.5 billion) syndicated loan from ten Chinese banks, RBC reports.

«The relevant agreement signed within the framework of the Eastern Economic Forum, in Vladivostok, suggests the attraction of the three-year syndicated loan from the club of the Chinese commercial banks with an extension for additional three years (...) Credit will not be rigidly tied to specific investment projects. Thus, the bank may use the attracted funds to finance a wide range of investments and export projects», the publication states.

A coordinator of the syndicated loan is the Harbin Bank, and ten banks participating in the transaction are Harbin Bank, Baoshang Bank, Bank of Zhengzhou, Harbin Bank Financial Leasing, Bank of Fuxin, Bank of Ganzhou, Bank of Jiujiang, Bank of Weifang, New China Trust, Bank of Chaoyang.

In his turn, the head of the VEB Sergei Gorkov saidб being not-tied-in with specific projects allows the VEB to have some freedom in terms of the yuan funding distribution.

«We have a portfolio of projects with our Chinese partners, thus, the yuan currency is quite organic in terms of use. At the same time, we are not tied-in with particular projects there, which gives us a certain freedom», he added noting that the bank does not plan to use these funds to rebuild the capital.