The EUR120m loan, including an EUR50m syndicated loan, will be used to create OSB, an exceptionally strong wood-based panel used in the construction industry.
About EUR4m of the proposed EBRD loan be invested in a new biomass furnace, and it will burn bark waste gathered during wood processing at the plant.
The biomass furnace will reduce Kronospan’s energy footprint, lowering the company’s greenhouse gas emissions by over 13,000 tons of CO2 a year.
EBRD is taking a seven-year EUR70m A Loan onto its own books.
Raiffeisenlandesbank Oberosterreich is funding a five-year EUR40m B Loan, while Canada’s investment funds company Cordiant Capital is funding a seven-year EUR10m B loan matching the maturity of the EBRD’s A loan.
Kronospan will set up OSB production at its existing plant at Egorievsk in Moscow Region, a wood-processing plant, and contribute advanced manufacturing technology in the process.
OOO Kronospan is a Russian subsidiary of Kronospan Holdings East, a member of the Austria-based Kronospan group of companies, enagaged in the manufacture of wood-based panels.
