OOO Ken-Pak Zavod Upakovki
MIGA has issued guarantees in the amount of $76 million covering Tapon France S.A.S (“Tapon’s”) investments in the construction of a new aluminum beverage can production facility in the city of Volokolamsk. The MIGA guarantees are covering Tapon’s equity investment of $38 million and shareholder loans of $44 million. The coverage for the equity investment and shareholder loans is 15 and eight years, respectively, against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project will help meet the growing demand for aluminum beverage cans in Russia and is expected to strengthen competition in the industry and improve production process efficiencies and product quality, by bringing in internationally competitive managerial practices. The production capacity for the new facility is expected to reach approximately one billion cans per year.
The project will involve job creation as well as the transfer of state-of-the art technology and the introduction of European Union standards and practices at the Russian production facility.
The project is aligned with the World Bank Group’s Country Partnership Strategy for Russia, which calls for promoting economic diversification for sustainable growth, facilitating investment in non-traditional sectors and, supporting technological modernization in the manufacturing sector.