OREANDA-NEWS. November 11, 2008. In the framework of extending cooperation with Russian priority industries, VTB Bank actively finances the engineering sector, reported the press-centre of VTB.

Under the loan agreements signed in late October by VTB and JSC AVTOVAZ, the Bank provided a RUR 4 billion facility to the carmaker for 12 months to finance the working capital of the enterprise.

The cooperation between VTB and Russia’s largest automobile manufacturer has been actively developing since 2002. Over the past year, the parties carried out a number of transactions, including supply of imported equipment to AVTOVAZ. Besides, VTB acted as the arranger of the company’s four bond offerings worth RUR 14 billion. Today, AVTOVAZ Group has a single credit limit with the Bank in the amount of RUR 17 billion with the maximum term of 7 years.

VTB Bank perceives support to the domestic non-financial sector as one of its principal activities. The total volume of documentary credit limits set by the Bank for engineering enterprises, regarded by VTB as a priority direction, currently exceeds USD 3.5 billion.