30 Sep 2009 11:15

VEB to raise loan from German banks to finance equipment deliveries

MOSCOW. Sept 30 (Interfax) - Vnesheconombank (VEB) has signed a loan agreement with DZ Bank AG Deutsche Zentral-Genossenschaftsbank and AKA Ausfuhrkredit-Gesellschaft to finance deliveries of German-made equipment for Volzhsk Construction Materials Plant LLC in Marii-El, VEB said in a statement.

The loan agreement was signed in furtherance of the basic agreement between VEB and AKA Ausfuhrkredit-Gesellschaft.

German MASA-Henke Maschinenfabrik GmbH has a contract to supply the Volzhsk plant.

VEB is participating in the project to build a gas-concrete plant in Volzhsk with capacity for 600,000 cubic meters a year. The plant will produce gas-concrete elements used to build low-rise housing units with German modular technology.

DZ Bank is part of the FinanzVerbund cooperative banking group, which unites about 1,200 German banks, including Volksbanken and Raiffeisenbanken. FinanzVerbund DZ Bank is the central bank for more than 1,000 German cooperative banks.

AKA Ausfuhrkredit-Gesellschaft LLC was founded in 1952 to support German exports. Ownership is shared by 20 German banks.