Support The Moscow Times!

TGK-2 Gets $400M from Chinese Bank

Electricity utility TGK-2 and its Chinese partner on Tuesday secured a $400 million Chinese loan to build a power plant in Yaroslavl, the Russian company said.

The loan comes from the Industrial and Commercial Bank of China.

TGK-2 and China's Huadian Corp. are building a 450-megawatt power plant at a cost of 20 billion rubles ($662 million).

The partners will use their own money to provide the remaining funds.

Huadian holds 51 percent in the joint venture to build the gas-fired power plant. The companies agreed to the joint venture during President Dmitry Medvedev's visit to China in September 2010.

A city of 600,000, Yaroslavl is a large industrial center 250 kilometers northeast of Moscow.

TGK-2, part of Sintez Group, is a heat and power utility that operates in six regions across the north of European Russia. About half its revenue comes from regulated monopolistic heat sales.

Ratings agency Fitch withdrew the company's ratings last month because the utility decided to stop participating in the rating process, Interfax reported.

In May, Fitch said it had downgraded TGK-2 to CC, saying it reflected the utility's weak cash generation and liquidity.

"TGK-2's ratings are also constrained by weak corporate governance when compared to international standards," Fitch said in a statement.

TGK-2 owns 15 combined plants.

Related articles:

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more