OREANDA-NEWS. June 25, 2013. Sberbank of Russia has entered into a credit facility agreement with Japan Bank for International Cooperation (JBIC) and Mizuho Corporate Bank, Ltd. to secure trade financing for the construction of a high-voltage transformers plant in the Kolpinsky District of St. Petersburg, a joint venture between Power Machines and Toshiba Corporation.

The transaction has a complex structure, with financing coming partly from JBIC (direct financing) and partly from Mizuho Corporate Bank, against a guarantee provided by NEXI (Nippon Export and Investment Insurance), Japan’s export credit agency.

Under the agreements, Sberbank will use its North-Western Bank to provide rouble financing to the JV using internal hedging instruments.

“With the credit facility from JBIC and Mizuho Corporate Bank, Sberbank will be able to offer attractive financing to one of its key clients,” said Andrey Donskih, Sberbank’s Deputy Chairman. “This unique deal is a major milestone in the cooperation between our banks, helping to support and foster business ties between Japan and Russia and open up new exciting opportunities in trade financing.”