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. Last Updated: 07/27/2016

EBRD to Raise $1Bln for VW Plants

The European Bank for Reconstruction and Development will lend 750 million euros ($1 billion) to help Germany's Volkswagen build its first car plant in the country, the bank said Tuesday.

The bank will lend 250 million euros itself and will organize a syndicate for the remaining sum.

Volkswagen is building a plant near Kaluga that will produce 115,000 cars a year. The company earlier estimated the plant's cost at 370 million euros. Volkswagen is also discussing a project to build a car components plant in Russia.

Last year, the EBRD agreed to organize a 292 million euro equity participation in the project, of which it will contribute 30 million euros.

Volkswagen expects to begin production of the Volkswagen-Rus compact model on September 16, Prime-Tass news agency reported Tuesday.

(Reuters, MT)