Under the Memorandum signed between VTB Bank, Sberbank of Russia, JSC Avtovaz and State Corporation Rostechnologii VTB has provided a RUB 5 billion facility to JSC Avtovaz for 18 months. The loan will be channeled into refinancing series 04 bond issue earlier placed by the company through the open offering.
According to Valery Lukyanenko, Member of VTB Bank Management Board, “these funds were granted as part of VTB’s active participation in the automotive industry support program.“
JSC AVTOVAZ is a major car maker in Russia and the Eastern Europe. As at 2009 year-end, its share in the Russian market accounted for about 25%.