VTB Bank and Development-Yug, construction and investment corporation, have entered into a Cooperation Agreement setting the basic lines for further development of mutually rewarding partnership between the Parties. The Agreement was signed within the framework of the VII International Investment Forum, held on 18 - 21 September in Sochi.
Under the Agreement, the Corporation will invite VTB as a major lending institution for providing complex bank services to Development-Yug, subsidiaries and associated companies. Contributing to current and strategic tasks of the construction corporation, VTB will finance investment projects and present activities of the company. These projects can be implemented through foreign loans or limits opened for the Bank by international financial institutes. The Agreement envisages cooperation between VTB and Development-Yug in solving the tasks related to corporate control financing, and also in making deals in the Russian and international financial markets, including operations with securities.
VTB actively cooperates with developer companies both in Moscow and in the regions. Today, total volume of financing extended by the Bank to such enterprises amounts to RUR 145 billion.
JSC Development Yug, construction and investment corporation, established in 1995, is the largest developer of real estate and commercial property in the Krasnodar market. In 2007, the company built 142.000 sq. m. of real estate and commercial property. Nowadays, 15 establishments of over 300.000 sq. m. are under construction. Project portfolio includes 50 constructions of over 900.000 sq. m. The company has a diversified integrated structure covering production and operation. According to the company's forecasts, the profit from the current and planned investment projects, as well as contract works for a period from 2007 to 2009 will exceed RUR 25 billion. Development-Yug is one of the few construction companies providing audited financial statements according to the IFRS. In May 2007, the company placed a 3-year bond issue worth RUR 1 billion at the MICEX stock exchange.