May 27, 2019, 4:25 p.m. EDT

Russian Federation : Sberbank opens international and Russian unsecured letters of credit for ChelPipe Group

May 27, 2019 (Euclid Infotech Ltd via COMTEX) -- Sberbank has opened international and Russian unsecured letters of credit for ChelPipe Group worth more than RUB 10 bln in total.

The letters of credit were opened to purchase rolled stock to produce large-diameter pipelines. In accordance with export contracts, ChelPipe Group is providing these pipelines to construct main gas lines of Saryarka (Kazakhstan) and TAPI (Turkmenistan Afghanistan Pakistan India), as well as to carry out planned construction and repair works of Russian oil and gas pipelines.

Deputy Chairman of the Executive Board of Sberbank Anatoly Popov:

We are glad that Sberbank is a regular partner of ChelPipe Group, especially on such large projects as Saryarka and TAPI. Sberbanks letters of credit are highly appreciated by Russian and foreign contractors and allow clients of the bank to agree on the most profitable payment conditions and minimise their risks under existing contracts. Our team constantly works on offering our clients the most beneficial business solutions.

CFO at ChelPipe Group Valery Borisov:

ChelPipe Group takes part in the largest infrastructure projects not only in Russia, but also abroad. Long-term efficient cooperation with Sberbank allows the company to meet the most demanding requirements under financing the largest international deals, which proves the reliability of the company as supplier for its clients. We thank Sberbank for its professional approach to implementing projects and cooperation with ChelPipe Group.

Previously, under the TAPI gas pipeline construction project, Sberbank acted as the confirming bank for a USD 200 mln letter of credit, issued to ChelPipe Group by the State Bank for Foreign Economic Affairs of Turkmenistan under a reimbursement undertaking of Islamic Development Bank.

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