The Russian privately-owned universal commercial bank Promsvyazbank (PSB) has announced that it will provide one of the largest Russian pipe producers, ChTPZ Group, a loan in the amount of Ruble 3 billion (about $98.6 million), to be used to finance its working capital.
Under the loan agreement, the funds will be divided between ChTPZ Group's subsidiaries, with Pervouralsky Novotrubny Works (PNTZ) to receive Ruble 1.3 billion ($42.7 million), and Chelyabinsk Tube Rolling Plant (ChTPZ) to secure Ruble 1.7 billion ($55.9 million).
The duration of the credit line is 18 months.
In 2010, ChTPZ Group plans to increase production at its pipe division by 20 percent.