On 04 November 2011, Russian President, Dmitry Medvedev, and Prime Minister, Vladimir Putin, visited the Gorky Automobile Plant (GAZ). In the course of the visit Andrey Kostin, VTB Bank President and Chairman of the Management Board, and Bo Andersson, President and CEO of Gaz Group, entered into a RUB 38 billion loan agreement maturing in 7 years. The funds will be channeled into refinancing of a syndicated loan earlier provided to Gaz Group and into granting a financial support of investment projects launched by automakers.
The document was signed “in order to increase the competitive strength of the Russian auto industry, maintain the quality and reliability of cars and auto components manufactured by the Group and develop effective partnership relations with major foreign automakers.”
The loan will be secured by surety commitments of operating companies within Gaz Group, their pledged shares and property.
The agreement also provides for VTB’s participation in arranging borrowings for GAZ Group at public debt capital markets.
VTB Bank is considering cooperation with GAZ Group as one of the most perspective business lines
VTB Bank President and Chairman of the Management Board
“We believe that the Russian automotive market has a huge growth potential. As a leader of domestic auto industry, GAZ has every opportunity necessary for further successful development. That is why, VTB Bank is considering cooperation with GAZ Group as one of the most perspective business lines,” said Andrey Kostin.