03.12.09. Novikombank supports AVTOVAZ
Novikombank, one of AVTOVAZ’s partners on the Russian financial market, has granted a US$ 20.7 million loan to the car manufacturer. This decision underlines the strength of Novikombank’s commitment to expanding the finance of Russian industries.
Novikombank’s resources will be used for a short-term financing of AVTOVAZ’s day-to-day needs until the company receives government support and new investment from its shareholders.
In late November 2009 a Memorandum of Understanding was signed to determine the fundamental terms and conditions of the company’s debt restructuring and the implementation of a new production and investment programme. The Memorandum provides for the shareholders’ investment in and transfer to AVTOVAZ of the technologies and production equipment that will ensure the company’s economic efficiency and leading position on the Russian car market.
Ilya Gubin, Novikombank’s president, says: «Our involvement in the national economy support programmes goes along various lines. In this respect, the finance provided to AVTOVAZ by Novikombank is another example of an efficient partnership. Novikombank has made its contribution to the credit support of the company’s current projects and to the successful implementation of the programme aimed at the technological upgrade and realisation of the development programme of the automobile industry in the Russian Federation».
For information purposes: Novikombank was established in 1993. Today, it is a solid, rapidly growing financial institution offering a comprehensive range of banking services to its customers. The provision of finance to Russian industrial companies, including defence enterprises, the automobile industry and technology-intensive manufacturers is among the Bank’s priorities. As of 1 October 2009, the Bank’s capital amounts to 6 billion roubles, with net assets of 30 billion roubles.
