10 November 2003 05:51
VTB, AvtoVAZ sign general cooperation agreement
MOSCOW. Nov 10 (Interfax) - Vneshtorgbank (VTB) and AvtoVAZ have signed a general cooperation agreement, the VTB
press service said.
"The signing of a general agreement comes as the next step towards further developing the parties' mutually
beneficial cooperation, which will help increase the plant's market capitalization, make its stock- market
instruments more attractive for investors, contribute to the successful implementation of its production program and
investment projects, and improve the system of international and internal settlements. It will also help it introduce
advanced techniques for financial resources management," the bank's press release reads.
VTB and AvtoVAZ signed a cooperation program in September 2002, which outlined some specific areas of contacts,
including lending for the plant's production program, its long-term investment projects, insurance, as well as the
issuing of ruble-denominated bonds and AvtoVAZ's entry into the foreign borrowings market.
VTB has opened credit lines for AvtoVAZ to finance the delivery of foreign-made equipment to the auto-plant from
funds obtained from foreign banks. These funds are insured by export insurance agencies.
AvtoVAZ has already placed promissory notes worth a total of 3.4 billion rubles. The auto-maker placed its first bond
in February 2003. VTB acted as the organizer, underwriter and payment agent. AvtoVAZ is planning to place its second
ruble-denominated bond worth about 3 billion rubles in 2004. [RU EUROPE EEU EMRG AUT BNK] tm tj <>
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