12 February 2003
On February 11, 2003, within the framework of President Putin`s visit to France, an Agreement was signed between Vneshtorgbank and Natexis Banques Populaires ensuring a ?300 million credit line to be opened to Vneshtorgbank.
The Agreement was signed by Andrey Kostin, President and CEO of Vneshtorgbank, and Francois Ladam, General Director of the Natexis Banques Populaires Group.
The financing raised by Vneshtorgbank under this Agreement will be channeled into delivery of French-made equipment, goods and services into Russia. When necessary, insurance coverage for these transactions will be offered by COFACE, French national export credit agency. No further guarantee by the Russian government will be required.
Additionally, credit facilities offered under the Agreement can be used by Vneshtorgbank`s customers to purchase equipment and goods in other countries of the EU, the USA and Canada under guarantees of the national export credit agencies.
Through the Agreement signed Vneshtorgbank will now be able to raise long-term credits in Euros and US Dollars on most favorable for the Russian parties financial terms. The funds will certainly help Russian real sector enterprises to launch and successfully implement various manufacturing projects.
Obviously, the credit facilities extended by Natexis Banques Populaires signall of Vneshtorgbank`s further achievement in its strategic efforts aimed at providing the Russian economy with long term financial resources, a significant advance in its mutually reinforcing cooperation with International financial institutions since December 2002, when Vneshtorgbank succeeded in raising an ever largest syndicated loan in the history of the Russian banking system.
Presently, Vneshtorgbank is considering various projects to be eligible for financing under this Agreement with the COFACE insurance.
Natexis Banques Populaires is a major bank of France with an explicit focus on business-to-business trade facilitating. Also, there has been a good record of mutually rewarding and enriching partnership between Natexis Banques Populaires and Vneshtorgbank. Since 2002, Natexis Banques Populaires has been a strategic shareholder of COFACE.
The Agreement signed reflects the growing recognition of Vneshtorgbank`s world standing by the financial community of the West. At present, guarantees issued by Vneshtorgbank are readily accepted by export credit and guarantee agencies of the leading industrialized economies of Europe, Northerica, Japan and South-Eastern Asia.