OREANDA-NEWS. February 08, 2010. Alfa-Bank has extended an RUB 8.9 bln credit line to Sibir Airlines (part of S7 Airlines Group). Sibir has already received RUB 5.4 bln of the loan, with the rest to be transferred once the deal has been approved by Sibir’s shareholders at a meeting scheduled for March, reported the press-centre of Alfa-Bank.

The five-year loan is collateralized by a controlling stake in Sibir Airlines, and the S7 Group and its owners are acting as surety.

The agreement signed between Alfa-Bank and Sibir stipulates that Alfa-Bank will hold a portion of S7 Group’s accounts proportionate to the Bank’s share of Sibir’s credit portfolio.

To ensure the continuation of this rewarding partnership, two Alfa-Bank representatives have been recommended to become members of Sibir Airline’s board of directors (Aleksey Zotov, Corporate Business Development Director and Igor Andreev, Head of Oil & Gas Industry and Telecommunications). Aleksey Zotov said, "Over the past few years, the company has proved itself as a reliable partner. Alfa-Bank is more than ready to provide financing to Sibir Airlines on very favorable terms. I am sure that with our help, Sibir Airlines will be able to implement a large number of ambitious and attractive projects".

Vladislav Filev, General Director of the S7 Group, said, "For a number of years, S7 Group has maintained close and effective cooperation with Alfa-Bank. The newly opened credit line is only the latest example of this cooperation. We are confident that our partnership with Alfa-Bank will make it possible for us to continue to develop the company in all key areas".