Alfa-Bank was authorized to finance Nitol Solar project for polycrystalline silicon production in Russia. The total sum of up to USD 190 million will be spent to construct a unique and Russia’s only enterprise of this nature. The transaction is to be closed in September of 2008.
Polycrystalline silicon is the main raw material used to produce solar battery components. Its production will encourage further development of innovative technologies in alternative power generation and create a new field in Russian industry.
“Alfa-Bank is actively developing project financing in Russia”, as Veniamin Gutnikov, the Vice-President said. “We see strong potential in our collaboration with Nitol Solar, and consider this project attractive and promising. By various assessments, the Nitol Solar project is one of the largest and innovative in Russia. I am confident that this company will achieve dominance in the solar energy market in the nearest future”.
The project is expected to be of great importance to the Russian economy in general. The shortage of this raw material is so severe that the idea of its production appeals to many international investors even at this early stage. In past six months Nitol Solar has welcomed two new shareholders - Suntech Power Holdings Co., the world major player in solar industry, and the World Bank represented by the International Finance Corporation.
Worldwide demand for alternative sources of power is rapidly growing, therefore the production of polycrystalline silicon has a long-term growth potential. The first industrial samples of polycrystalline silicon were produced by Nitol Solar in spring of 2008. They have already been tested by one of the independent foreign laboratories and received a certificate of industrial testing, conducted by the product consumers. The Nitol Solar facility launch is scheduled for end 2009 in the town of Usolie-Sibirskoye, the Irkutsk region. The designed capacity is 3,700 tons of polycrystalline silicon per year.
About Nitol Solar
Nitol Solar is an international group of companies, specializing in the production and sale of chemical products, which are key components for the solar energy industry. Production is based at a chemical plant complex, located in the Irkutsk region; the complex produces chlorine-based products, including trichlorosilane which is the main feedstock for polysilicon. Nitol Solar intends to become a leading global supplier of products for the rapidly growing solar energy industry. For more information on Nitol Solar please visit the website at www.nitolsolar.com
About Alfa-Bank
Alfa-Bank was found in 1990. It is a universal bank offering a full range of standard bank transactions represented at financial market including individual and corporate customer services, investment banking business, trade financing and asset management.
The Alfa-Bank is one of the Russian largest banks in terms of asset value and equity. According to its audited (IAS-based) financial statements of 2007, assets of the Alfa-Bank Group which includes the OAO Alfa-Bank, subsidiary banks and financial companies were amounting to $22.7 billion, the total capital – to $1.9 billion, the credit portfolio less reserves – to $15.4 billion. As at the end of 2007, its net profit was equal to $253.5 million (vs. $190.3 million at the end of 2006).
The Alfa-Bank provides services to over 51.5 thousand corporate customers and more than 2.65 million individuals. It operates 304 branches and offices in Moscow, Russian regions and internationally, including subsidiaries in Kazakhstan and Netherlands as well as a financial subsidiary in the USA. For more information on Alfa-Bank please visit the website at www.alfabank.ru.
Nitol Solar Group of Companies:
Pavel Krupnov
T. +44 78 94 56 63 57
Larisa Kazantseva
T. +44 78 94 56 63 52
