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Kosta Legal assists Eximbank of Russia in financing construction of Tashkent Metallurgical Plant

Thursday, 17 January 2019

Kosta Legal lawyers have successfully advised Eximbank of Russia on its EUR 142 mln financing of the project for the construction of the Tashkent Metallurgical Plant. The 10-years financing has been provided to Uzbek Asaka Bank and Uzpromstroybank, which channel the funds to a project SPV. The main contractor under the project is Russian METPROMPROEKT, whereas financial risks under the relevant loan agreement are insured by the Export Insurance Agency of Russia.

Our lawyers have provided general advice on the financing scheme, reviewed the draft loan agreement, analyzed accompanying security contracts and assisted in negotiating the deal. Working in cooperation with Herbert Smith LLP, headquartered in London, we have helped to accommodate English and Russian law legal mechanisms with rigid requirements of Uzbek law. It was a particular challenge to arrange the SPV funding through Uzbek banks, since the Uzbek legislation on syndicated financing remains to be underdeveloped and rather inflexible. Further, we had to coordinate between wishes of project participants, requests of Russia’s and Uzbek state authorities, Russian and English lawyers.

Eximbank of Russia functions as an agent of the Russian Government in providing state support for exporting activities of Russian businesses by providing loans and other types of guarantees. The bank successfully expands its core activities in member states of the Commonwealth of the Independent States (CIS), countries of the Pacific Rim, BRICS, Latin America and other countries.