OREANDA-NEWS. In Moscow Andrey Kostin, Chairman and CEO of Vneshtorgbank JSC and Sergey Kogoghin, Director General of KAMAZ Inc. signed an agreement on granting a dual-currency US$50,000,000 and ?40,000,000 syndicated loan (approximately 2,8 billion roubles).

Moscow Narodny Bank Limited and Vneshtorgbank JSC became the arrangers. The loan bears margin of 1.5 per cent above LIBOR.

The loan has a tenor of 364 days and is granted for financing modernization of the present production facilities. Part of the funds raised will be used, for example, for investment development program of “KAMAZ-6520 II”, another part for projects of ZF-KAMA and Cummins-KAMA JVs’ productions location, and for development and extension of the program of KAMAZ vehicles leasing.

Later KAMAZ Company plans to refinance the loan, either issue Eurobonds (or other securities), or place shares on exchange market.