VTB Enhances Cooperation with TMK
OREANDA-NEWS. February 11, 2010. VTB Bank continues to expand its cooperation with OAO TMK, financing the Group’s major facilities under partial security in the form of government guarantees. The aggregate amount of loans granted by the Bank from December 2009 through February 2010 will amount to RUB 10 billion with a 5-year maturity, reported the press-centre of VTB.
The main funds provided to TMK will be primarily used to refinance the Group’s short-term liabilities, including those to VTB.
Besides, VTB has rolled over the USD 450 million loan, granted to the company in August 2009, to three years. The purpose of the facility was to finance partial redemption of TMK’s second Eurobond issue. The funds were provided for one year with the option of annual roll-over not exceeding five years (1 825 days). In early February 2010, VTB resolved to extend the loan to three years with the possibility of further prolongation to five years upon the company’s request.
These deals have once again confirmed the strategic partnership between VTB and TMK. Nine Russian companies and two foreign trade operators of TMK are currently among VTB’s customers. The Bank’s corporate business with the company is developing in a diversified range of financial services, including all types of investment banking products.
For reference:
TMK (LSE: TMKS) is Russia’s largest pipe producer, one of the world's three leaders in the pipe industry.
Its total production output exceeded 2.8 million tons in 2009. TMK sells its products in more than 65 countries.
TMK’s production facilities are located in Russia, the USA, Romania and Kazakhstan.
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