Moscow, December 24, 2019 — Gazprombank, VEB.RF and IRC MBIR Consortium Leader LLC (part of Rosatom State Corporation) concluded an agreement on the arrangement of financing for a project involving the construction of a multipurpose research reactor (MBIR).
The project, with a budget of almost RUB 80 bn, provides for the construction of a unique fourth-generation fast-neutron research reactor in Dimitrovgrad (Ulyanovsk Region). The MBIR is being created for the purposes of preserving and developing the nuclear power experimental base of the Russian Federation. The reactor will be used for research purposes to create and test new materials and nuclear technologies. Russian and foreign companies will become clients, who in turn will gain the opportunity to irradiate materials and carry out reactor testing.
The total volume of credit financing from Gazprombank and VEB.RF will amount to more than RUB 20 bn. Credit facilities will be provided on the basis of project financing with application of the Project-Financing Factory instrument. Aside from the provision of debt financing, the banks are expected to gain a share in IRC MBIR Consortium Leader LLC’s capital. The deal has already been approved by the Supervisory Board of VEB.RF.
“The Bank will help create a facility that will be significant for the country — not just in terms of research, but from the strategic perspective as well. I am confident that by funding such a large-scale and knowledge-intensive project, we are increasing the potential of Russian science in general. Moreover, this deal will elevate our momentous cooperation with VEB.RF and Rosatom State Corporation to a qualitatively-new level,” said Alexander Ushkov, Executive Vice President of Gazprombank.
“Nuclear power is one of the most spectacular examples of a high-tech industry where the Russian Federation confidently holds a leading position in the world. The Project-Financing Factory mechanism with the attraction of long-term bank syndicated lending is perfect for the implementation of such large-scale and capital-intensive initiatives,” said Daniil Algulyan, Deputy Chairman of VEB.RF.
“The conclusion of this agreement on the arrangement of financing for the project envisioning the construction of a multipurpose fast-neutron research reactor is consistent with the strategy for creating a MBIR reactor-based International Research Center embraced by Rosatom State Corporation. It is important that the largest scientific project of Rosatom State Corporation is considered investment-worthy by leading Russian banks,” commented Sergey Pastukhov, CEO of IRC MBIR Consortium Leader LLC.
The project for MBIR construction is being launched within the framework of the Federal Target Program for Next-Generation Nuclear Technologies in 2010–2015 and through 2020. It is designed to update the fleet of research reactors at Rosatom State Corporation and reinforce Russia’s leadership in the field of reactor research.