The board of directors of one of the largest Russian pipe producers, Chelyabinsk Tube Rolling Plant (ChTPZ), a part of ChTPZ Group, has approved an agreement with Russia's largest non-state-owned bank Gazprombank for the opening of a credit line worth a maximum of Ruble 10 billion (about $332.8 million).
Accordingly, half of the credit in question will be used by ChTPZ to finance the company's main production activities, while the other Ruble 5 billion (about $166.4 million) will be used to complete the company's investment project for the construction of a new shop for the production of single-seam large diameter (LD) pipes.
The money will be given in tranches, which will have to be repaid quarterly in equal parts starting in the 25th week from the date the credit agreement was concluded.
As SteelOrbis previously reported, the Russian government agreed to provide a state guarantee of up to Ruble 5 billion (about $166.4 million) for the credit line that Gazprombank will open for ChTPZ.