Vneshtorgbank raised a US$7.4 m credit facility for 6-year term from a leading Chinese bank, Industrial and Commercial Bank of China. The facility will be used by VTB to finance telecommunication equipment deliveries from China for MegaFon`s subsidiaries in Khabarovsk and Novosibirsk.
Financing was granted by Industrial and Commercial Bank of China against insurance coverage of the Chinese SINOSURE export credit agency under the master credit agreement entered into in August 2002, which envisages a US$200 million financing of the contracts to be concluded by Russian importers for a 10-year term. Those transactions were the first project under the draw-down of the line of credit.
Earlier, in August 2003 года, under the same line of credit of the Export and Import Bank of China (Eximbank), VTB was granted a $5.4 m credit for a 4-year term to finance import contracts made by Uralsviazinform company.
By today, Vneshtorgbank signed framework credit agreements with Industrial and Commercial Bank of China, China Construction Bank, the Bank of China and China`s Eximbank for a totalount of US$700 million. Import contracts of VTB`s Russian customers are being financed under the Chinese government support to export, and no guarantees are required from the Russian Government.
At present, Vneshtorgbank is the only Russian bank to have available so substantial credit facilities in terms of maturity and volume to finance equipment import from China on favourable international market terms.
Industrial and Commercial Bank of China is the largest State-owned commercial bank in the People`s Republic of China. According to The Bankers` Almanac, as of 1 July 2003 Industrial and Commercial Bank of China ranked the number oneong Chinese banks and 13th world-wide.
MegaFon, the first Russian national GSM 900/1800 mobile communication operator, was established in May 2002 after North-Western GSM company was renamed and changed its legal status as a result of a consolidation with Sonic Duo, Moscow, Mobicom-Caucasus, Mobicom-Centre, Mobicom-Novosibirsk, Mobicom-Khabarovsk, Mobicom-Kirov, MSS-Povoljie, Volga GSM and Urals GSM companies. MegaFon`s core shareholders are CT-Mobile, Sonera (Finland) and Telia (Sweden). MegaFon`s licensed coverage extends over 100% of the national territory with 145 million of population. Nowadays, the company serves more than 5.8 million customers.