VTB Bank and JSC AVTOVAZ have signed a Cooperation program for 2008 aimed at enhancing mutually rewarding cooperation between the Parties under the Strategic partnership agreement signed in 2006.
This Program complies with VTB policy to develop complex cooperation with the leading Russian enterprises of the car industry. The Cooperation shall enable AVTOVAZ to tap wide capacities of VTB and other VTB Group participants in financing current and investment demands of the enterprise, as well as its export-import operations, which include raising foreign funds and applying the whole spectrum of instruments accepted in the international banking practice. In particular, the Program stipulates financing of leasing programs (including JSC VTB-Leasing involvement), VTB Bank assistance in AVTOVAZ bond issue and placement, cooperation in implementing LADA Credit corporate program and in making and introducing new credit products focused on LADA car purchasing.
The partnership also envisages the Parties' joint participation in socially important municipal, regional and interregional projects.
Cooperation between the Bank and the largest Russian car maker started back in 2002. Last year, a number of deals were implemented, among them - financing the current activities and equipment imports for AVTOVAZ. Besides, during the years 2003 - 2007, VTB acted as an arranger of four bond issues of the enterprise totaling RUR 14 billion. Nowadays, the Parties cooperate within the credit limit set by VTB for AVTOVAZ Group of companies worth RUR 17 billion for a maximum term of 7 years.