With the view of reinforcing cooperation with JSC Russian Railways (RRW), a specialized subsidiary of Vneshtorgbank (VTB) - JSC VTB-Leasing took part in a tender to enter into finance lease contracts with the RRW in respect of rolling stock. Under a decision of the RRW Tender Commission dated June 6, 2006, VTB-Leasing was announced one of the tender winners.
The company is now entitled to lease to the RRW open freight cars, electric trains and railway busses worth RUR10.1 billion. The term of finance is 6.5 years.
Within the third quarter of the current year, VTB-Leasing will enter into relative purchase contracts, as well as delivery contracts with various producers of rolling stock and finance lease contracts with the RRW.
In future, Vneshtorgbank together with its specialized subsidiary VTB-Leasing is set to participate in other tenders held by the RRW to enter into lease contracts.
The Bank's participation in this project represented by VTB-Leasing is a further step in implementing VTB strategy aimed at developing cooperation with transport enterprises through offering them the widest possible spectrum of financial and banking services.
Presently, the Bank is servicing the largest domestic manufactures of railway, air, water and motor transport. The aggregate amount of documentary credit limits set by Vneshtorgbank for these businesses is over USD2 billion. Last year, the volume of loans extended by Vneshtorgbank to corporate customers from this segment exceeded USD1 billion.
VTB-Leasing was founded in 2002 and is wholly owned by Vneshtorgbank. VTB-Leasing is a multi-facet company offering to large- and middle-size businesses a full range of leases including production and processing facilities, motorcar and special equipment, PC, office and trade equipment, real estate and others. The Company's branches operate in the Northwest and Ural federal constituencies, as well as in Ukraine.
On June 1, 2006, Fitch Ratings assigned VTB-Leasing an Issuer Default rating of 'BBB' with a Stable Outlook, a Short-term rating of 'F3', and a Support rating of '2', which is the first time an international rating has ever been assigned to a Russian leasing company.