Corporate Communications

Red October US$80,000,000 Medium-Term Structured Finance Facility syndicated

28 March 2008
The US$80,000,000 Medium-Term Structured Finance Facility for Closed Joint Stock Company Volgograd Steel Works Red October has been successfully syndicated in the international loan market, with banks signed into the facility on 29 February 2008.

The loan was fully underwritten and funded by VTB Bank Europe plc, which acted as sole mandated arranger and bookrunner for the facility. VTB Bank Europe plc is also the facility agent and security trustee; JSC VTB Bank is Passport Bank.

The following banks joined the facility as Lead Arrangers:

  • Erste Bank der Oesterreichischen Sparkassen AG
  • HSH Nordbank AG, London Branch
  • VTB Bank (Austria) AG
and, as an Arranger:
  • Joint Stock Company Banque Societe Generale Vostok

The facility has a tenor of 5 years and is secured by assignment of proceeds under export contracts with foreign buyers.

Red October is located on Volgograd, Russia and is one of Russia`s leading specialist steel producers. Red October was acquired by Russpetstal in March 2007.


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