Vnesheconombank has been successful in completing the project to finance the construction of a pig farming facility with a total annual capacity of 42,000 tonnes of live-weight pork. The project initiator is Bashkir Meat Company. The company used funds borrowed from Sberbank to repay its debt to Vnesheconombank (about 3 billion roubles) early in full.
“With Vnesheconombank’s support, the company built a modern animal production facility. The project contributes to the sustained development of agricultural production, import substitution for meat products and the country’s enhanced food security. Vnesheconombank accomplished its objective as a development institution, ensuring the completion of a project in a strategic industry on the principles of return on investment and break-even results. The new production facility will enable the borrower to implement a new project with the participation of a commercial bank,” Vnesheconombank’s First Deputy Chairman and Member of the Board Nikolay Tsekhomskiy said.
The Bank became involved in the project in 2012, when Vnesheconombank and Bashkir Meat Company entered into a loan agreement for 5 billion roubles. Bashkir Meat Company ranked among Russia’s 20 largest pork producers in 2017 (source: http://www.nssrf.ru).
In the second quarter of 2018, the company sold 25,200 tonnes of pork, with its net profit reaching 400.5 million roubles. With Sberbank’s support, the borrower is currently carrying out a project to create a genetic selection centre worth 3.7 billion roubles.