Sollers-Ford JV might receive VEB loan at CB refinancing rate +2%
NOVO-OGAREVO. April 22 (Interfax) - Vnesheconombank (VEB) will provide financing for the Sollers-Ford joint venture at the most favorable rates, the bank's chief, Vladimir Dmitriyev, told journalists following a meeting of the bank's supervisory board.
"We believe that the rate should be as attractive as possible. We are now considering the refinancing rate plus 2%," Dmitriyev said.
VEB will finance the construction of new production facilities at three sites: Naberezhnye Chelny, Elabuga and Vsevolozhsk.
"The budget's project is 75 billion rubles, 18 billion rubles is a property injection and the rest is capitalization of project, which will go to developing production," he said, adding that the Ford and Sollers are injecting property.
Following the project's implementation, production capacity will be created able to assemble 350,000 cars a year. "Localization will be 60%. Local oversight will set up for engine construction, as well as a R&D base in Tatarstan and a dealership center," Dmitriyev said.
He added that a memorandum between the bank and the project's participants will be signed, which will spell out the decisions made on Friday. "We now have agreed on the main terms but, of course, during thorough document development, we will present the supervisory board the final financing term for lending in this project," he said.
The loan to Sollers-Ford will be open for 10 years.
Dmitriyev also said that VEB is in negotiations with Fiat for financing.