Sveza

completed

Sveza Holding (or the company) is the largest birch plywood producer in Russia and accounts for 10% of the global production of birch plywood. Sveza owns three plywood plants producing birch plywood, particleboard, and bed slats mainly utilized in construction, furniture production and transportation industries, and several logging companies in various regions of Russia. This project will support Sveza’s 2004-2007 investment program, which comprises of: - capital expenditures and modernization program for Sveza’s plywood plants, - expansion of the company’s harvesting infrastructure, and - refinancing of existing short-term debt. This project will enable Sveza to increase the quality of its existing products, widen its product selection, and lower its production costs and raw material consumption through the replacement of older production equipment. The company will further expand its harvesting and sawmilling infrastructure which will improve the company’s raw material self sufficiency. In addition to the above, the refinancing component will help the company reduce its funding cost and lower its maturity mismatch by replacing existing expensive short-term loans by long-term funding.