MOSCOW & LONDON, 21 April 2016, Morgan Lewis has advised Sberbank CIB on a $100 million prepayment for Russian Copper Company Group (RCC), the third largest Russian copper producer.
The transaction was structured as an advance payment under an export contract between RCC and a subsidiary of Sberbank. The prepayment is to be discharged by deliveries under the export contract over a period of three years. The aggregate volume of copper products scheduled for delivery under the export contract is $170 million.
Commenting on the deal, Morgan Lewis partner Grigory Marinichev said: “This remarkable transaction is another example of what we believe will become an established trend in the Russian market: financial institutions showing increased appetite for prepayment financings compared to traditional PXF, which continue to remain challenged given the current turbulent economic situation in Russia. We are delighted to have advised Sberbank on this transaction and it is encouraging that Russian banks are now increasingly involved in prepayment deals which, historically, have been predominantly arranged by foreign trade finance institutions.”