On October 18, 2002, a Loan Agreement was signed between Vneshtorgbank and AKA Ausfuhrkredit-Gesellschaft mbH (AKA Bank), Frankfurt Main, Germany. The Agreement comes within the framework of the ? 250 million Master Loan Agreement signed by the two banks earlier in September, 2001.
The ? 7.8 million loan raised by Vneshtorgbank for the 7-year period with the guarantee of the Hermes export credit and guarantee agency is designed to finance the import of industrial equipment from Germany under the commercial contract entered by the Samara Metals Works (SMZ, in Russian acronyms), which is a part of the Russian Aluminium Group (RUSAL), and Siemens company. A co-financing bank under the credit is Commerszbank AG. The credit extended to SMZ by Vneshtorgbank will total ? 9.2 million.
Financing imports for SMZ will actually be the first export credit raised by RUSAL with a foreign export credit agency involvement. More importantly, the seven-year foreign loan channelled into RUSAL`s own investment needs is only reflective of the favourable sentimentong the creditors as to the Group`s development prospects. In light of this, Vneshtorgbank and RUSAL are set to bolster their mutually enriching and encouraging co-operation in the sphere of investment crediting.
From a strategic perspective, the new Agreement is a major policy move made by Vneshtorgbank in order to support a large-scale funding of industrial machinery purchases by those Russian companies and enterprises, which are most interested in raising long-term credits aimed at upgrading their equipment platforms.
Acting within the framework of credit lines opened by the leading export credit and guarantee agencies, as well as banks of Germany, Italy, Great Britain, the Czech Republic, Sweden, Japan and other countries, Vneshtorgbank has already extended credits to a number of its Moscow and regional customers operating at the forefront of telecommunications, heavy engineering, mining, food-processing and agricultural industries.
Presently, Vneshtorgbank is considering financing the Russian importers with the foreign export credit and guarantee agencies involved for the overall sum of more than USD 250 million.