Within cooperation with JSC Russian Railways (RRW) VTB Bank has extended its credit limit to this major Russian transporter to RUB 80 billion.
The facility gives the company access to the Bank`s financing capacity and the whole range of globally accepted instruments. In particular, the limit implies lending transactions, including financing of acquisition, maintenance and modernization of fixed assets; transactions with RRW promissory notes, and hedging of currency and interest risks arising in the company's operations.
Volume of transactions under the facility is to amount to RUB 65 billion with RRW and up to RUB 15 billion with its subsidiaries.
The Bank's regards JSC Russian Railways as one of its strategic customers and has been enhancing its relations with the company since its foundation. The amount of the documentary credit line set by the Bank for RRW has been gradually increased reflecting the scale of cooperation. The total volume of resources provided by VTB to RRW since 2003 has exceeded RUB 100 billion.
One of VTB's priority objectives is to provide sustainable financing of the Russian real economy. Transportation is vital for the socio-economic development of Russia, thus support of railway infrastructure guarantees stability of the country's industry.
Russian Railways (open joint stock company) was established by the Russian Government in September 2003. The Russian Federation is the sole shareholder of the company.
Russian Railways is one of the largest transport systems in the world. Total length of track is 85.2 thousand km. JSC Russian Railways takes first place in the world for the length of electrified lines totaling 42.9 thousand km. Russian Railways handles 39% of all cargo turnover in Russia (including pipeline transport) and over 41% of passenger rail transport.