Select your city:
Moscow

VTB Bank call center

+7 (800) 200-77-99
+7 (495) 739-77-99
For general information and enquiries

Vneshtorgbank and Moscow Narodny Bank arrange a syndicated loan for JCS KAMAZ worth USD 100 million

 
6 October 2006

Vneshtorgbank (VTB) and Moscow Narodny Bank (MNB) became the arrangers of a two-currency syndicated loan for JCS KAMAZ, a leading domestic producer of trucks. The ceremony of signing the Agreement was held on 6 October 2006 in Moscow.

The loan is extended to KAMAZ for a 12-month term in two currencies - USD 50 million and EURO 40 million, at LIBOR+1.5% p.a., unsecured. The syndication is to start in the near future. KAMAZ will use the funds received for its further development and general corporate purposes. 

This deal opens a window of opportunity for KAMAZ, which stayed aside of the international debt markets for a long time. Besides, it starts a new stage in enhancing mutually advantageous cooperation between the VTB Group and the KAMAZ Group, which has been successfully developing since 2002.

Over the past years, the Bank has financed the KAMAZ Group deals in current lending, leasing, promissory note transactions and trade finance amounting to USD 650 million. Vneshtorgbank also participated in arranging KAMAZ-Finance bonded debts totaling RUR 2.7 million. At present, Vneshtorgbank is financing a long-term project designed to launch a new truckline, named KAMAZ-6520 with increased carrying capacity. The Bank implemented a payroll project at KAMAZ Group enterprises and issued more than 30,000 cards. Also, the Bank acts as a sponsor of KAMAZ-MASTER rally-race team, which has more than once won Paris-Dakar rally and other international competitions.

Citing Andrey Kostin, Chairman and CEO of Vneshtorgbank, who addressed the signing ceremony, "to a great extent, implementation of the Russian transport strategy depends on success of machinery development. Support of such dominant spheres of domestic economy is a major task for Vneshtorgbank. Presently, the volume of credit risks taken by VTB on Avtoprom enterprises exceeds RUR 30 billion. We further plan to gain leadership positions in servicing the machine-building enterprises and increasing the VTB Group share in this market to 10% by 2008".


Back to the list



VTB group news subscribe
  • E-mail subscribe
  • RSS lent
    Subscribe
    Subscribe
Download the list of cities.....