St. Petersburg, June 3, 2021 — Gazprombank and Cherkizovo Group concluded an agreement on the main terms of financing for a project involving the construction of an advanced automated enterprise — a pork-slaughtering and processing facility in Tula Region — to be implemented by Cherkizovo Group.
In the presence of Russian President Vladimir Putin, the document was signed by Alexey Matveev, Deputy Chairman of Gazprombank’s Management Board, Alexey Dyumin, Governor of Tula Region, and Sergey Mikhailov, CEO of Cherkizovo Group PJSC.
The project was initiated by Cherkizovo Group, one of Russia’s largest meat producers. Total investments will amount to RUB 48 bln. Up to RUB 40.8 bln of this amount could be provided by Gazprombank in the form of project financing within the framework of the preferential loan program for agricultural enterprises established by the Russian Ministry of Agriculture (RF Governmental Decree No. 1528 dated December 29, 2016). The funds are expected to be used for the construction of an enterprise employing the most advanced meat-processing technologies. In particular, a special feature of the new enterprise will be the application of waste-free production technology. Implementation of the project will allow for the creation of over 2,000 high-paying jobs in the region.
“Cherkizovo Group is one of Gazprombank’s strategic clients in the agro-industrial complex, and it sets high standards for the entire sector. We are confident that the project will be successful and are grateful to the Group for the opportunity to become a financial partner in the deal,” emphasized Timur Belikov, Executive Vice President — Head of Gazprombank’s Project and Investment Financing Department.
“The creation of modern new enterprises promotes the industry’s accelerated modernization and increased competitiveness while making high-quality foodstuffs significantly more affordable for the population. I’m confident that the implementation of this project will not only give a significant boost to the business of Cherkizovo Group — but will also make an important contribution to the social and economic development of Tula Region,” noted Anton Grebeshev, Gazprombank Executive Vice President for the Development of Business Relations with Agribusiness Companies.
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Background:
Gazprombank ranks among the TOP 3 leaders of the Russian banking sector by main volume indicators (according to INTERFAX-100. Banks of Russia, www.finmarket.ru/database/rankings/), as well as among the largest financial institutions in Central and Eastern Europe.
Gazprombank provides a wide range of services to corporate and private clients. The Bank provides services to key sectors of the Russian economy — gas, oil, chemical and petrochemical, metallurgy, electric power, mechanical engineering, transport, construction, communications, the agro-industrial complex, trade and other industries. The Bank boasts many years of unique experience in the arrangement of project financing and placement of debt instruments on the Russian and international capital markets; the provision of financial and advisory services involving project, corporate and debt financing, as well as experience in the field of corporate investment management both in Russia and abroad.
Gazprombank’s retail business is focused on providing modern high-tech products and services. As of the beginning of 2021, the Bank was providing services to roughly 5 mln individual customers. The Bank’s retail loan portfolio as of year-end 2020 stood at more than RUB 660 bln, with a retail deposit portfolio in excess of RUB 770 bln.
Cherkizovo Group is Russia’s largest diversified manufacturer of meat products. The Group is one of the three market leaders for chicken meat, pork and meat products.
The company owns seven complexes for chicken-meat production (plus a Belaya Ptitsa manufacturing facility that the Group uses on a leasehold basis), sixteen pig farms, more than five meat-processing enterprises, two slaughtering lines, nine animal-feed mills, twelve elevators, a land bank spanning an area of 300,000 ha and a full-cycle complex for turkey-meat manufacturing in Tambov operating as a joint venture with, and under the control of, Grupo Fuertes — one of the leaders of the Spanish agricultural and food-processing sectors.
Vertical integration allows the Group to connect the cultivation and storage of grain crops, the production of compound feed and the breeding, fattening and slaughtering of cattle and poultry, as well as meat processing and distribution all across Russia, into a single chain to ensure long-term sales growth and profitability.
Cherkizovo Group shares are traded on the Moscow Exchange (MOEX).