Contracts As part of cooperation with a foreign export insurance agency, VTB organized Russia’s first ever credit under a «retroactive» financing program of the German export agency Hermes, VTB press service has reported. With the participation of German banks Deutsche Bank AG and AKA Bank, a E16.3-million ten-year credit was issued to the company Soda against the security of the German export agency Hermes. The company will use the credit to reimburse the cost of purchase of imported cement-making equipment. Equipment delivery under the financed contract was carried out and paid for by Soda prior to that without the participation of the export insurance agency. This makes the deal unique. That lending scheme may be useful to Russian manufacturers, which have no time to arrange financing against the security of an export insurance agency and are buying foreign-made equipment with funds from other sources. In order to ensure the interests of its clients, VTB is actively cooperating with foreign export insurance agencies and export-import banks. At present, the aggregate amount of credit lines opened by VTB and agreements, relating to financing specific projects of VTB clients in various sectors, is over $4.0 billion. The overall amount of credits, raised by VTB from foreign banks against Hermes insurance cover, is around $150m. (Note: Soda (Sterlitamak) is a major manufacturer of caustic soda in Russia. The plant also makes over 100 other chemicals, including inorganic compounds, construction materials, and consumer goods. The bulk of Soda output is sold domestically and globally, primarily in France, Iran and Turkey.)
Source: WWW.NOVECON.RU, March 14, 2007
