Dentons advises The Black Sea Trade and Development Bank on financing of the first port concession project in Russia
Press release
Moscow, March 2019 – Dentons has advised The Black Sea Trade and Development Bank (BSTDB) on extending a US$69 million loan to the Russian State Transport Leasing Company (STLC) to finance the construction of the Lavna Coal Transshipment Terminal at the Murmansk sea port. The loan agreement was signed by BSTDB President Dmitry Pankin and STLC Director General Sergey Khramagin in the presence of Prime Minister Dmitry Medvedev at the Russian Investment Forum in Sochi.
The BSTDB loan is the Bank’s largest investment in Russian infrastructure development to date.
The Lavna project is the first port concession in Russia. The project will make a significant contribution to the development of export transport infrastructure, will increase the efficiency of coal transportation and will enhance Russia’s transit capacity in the region.
Dentons’ team was led by Timothy Stubbs, Head of Banking and Finance practice in Russia, and also included Counsel Dennis Montgomery, Senior Associate Anna Booth and Associate Anna Nekhodtseva, all based in Moscow.
The Lavna coal transshipment terminal is part of the federal state program to develop and modernize Russia’s transport system and infrastructure. Completion of the terminal’s first stage with capacity of 9 million tons is expected by December 2020, with the second stage to follow by December 2021. The government is also considering a third stage with an additional capacity of 9 million tons and completion by 2023, as well as the construction of a mineral fertilizer transshipment terminal with a 6 million ton capacity. The Lavna project will use technology to minimize the environmental footprint.
Timothy Stubbs, Dentons’ lead partner on the deal, remarked: “We are delighted to have assisted BSTDB, our longstanding client in the Black Sea region, on this key Russian infrastructure financing. Our successful cooperation with BSTDB on this landmark project reflects the growing strength of Dentons’ Russian Banking and Finance and Infrastructure practices.”
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. Headquartered in Thessaloniki, Greece, BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is €3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s. For information on BSTDB, visit www.bstdb.org
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