Leading international law firm Dechert LLP is advising the European Bank for Reconstruction and Development (EBRD) and Rusnano, the Russian state corporation set up to kick-start the development of innovative technologies, on their joint agreement signed in Moscow today, to finance a new production line that will manufacture energy-saving glass.
The industrial partners in this project, which will use state-of-the-art technology to launch a new float glass line and glass coating facility in the Moscow region, are Japan’s publicly listed NSG Group ─ Nippon Sheet Glass Co. Ltd., a global leader in the glass industry ─ and the privately-owned STiS processing group, Russia’s leading producer of insulated glass units.
Under the terms of today’s agreement, the EBRD will contribute the equivalent of €35 million in common equity while Rusnano will contribute the rouble equivalent of €70 million in common equity.
The rest of the project financing will come from other sources and financial instruments, including the rouble equivalent of €80 million from Rusnano. Total financing for this project is forecast to reach the rouble equivalent of €295 million. Other financial details were not disclosed.
This is the first equity investment made by the EBRD with Rusnano and follows up on a Memorandum of Understanding on co-financing opportunities signed between the two institutions in December 2009. The Bank then expressed readiness to invest between €500 million and €1 billion over the medium term in Russia’s high-tech sector.
The Dechert team advising EBRD and Rusnano is being led by Moscow managing partner Laura M. Brank, assisted by Olga Watson, Alexander Volnov and Ruslan Koretski.
