Power Machines to attract Vneshtorgbank funds for technical re-equipment

Electrosila (member of Power Machines Group) and Vneshtorgbank concluded a deal on opening a €5.5-million five-year credit line. The money will finance the purchases of two processing units from the Italian Pietro Carnaghi company.

The Italian state-owned SACE export credit agency will guarantee the deal.
This project is part of the agreement on cooperation signed by Power Machines and Vneshtorgbank in 2001. This cooperation opens opportunities for establishment of credit lines, organization of syndicated credits, accumulation and placement of available monetary assets for the creation of additional financing sources for the consortiums programs, aimed at development of Russian power-machine building.

A year ago Electrosila and Vneshtorgbank implemented a similar project for the supply of processing equipment, produced by Pietro Carnaghi as stipulated by the overall technical re-equipment program for the groups enterprises.

Drawing up of the long-term investment credits enabled the group to increase significantly the volume of capital investments for the modernization in 2000-2003. This index for the end of 2002 constituted 421 mln. rubles, which is a 35.7 percent higher than the index for 2001 and more than two fold higher of the index for 2000.