News and Press Releases

12 December 2011

Cooperation with Magnezit Group

In Q3 2011 OJSC VTB Leasing and Magnezit Group signed 4 leasing contracts for a total value of 1.5 bn rubles.

VTB Leasing has leased to its client 4 production lines. This manufacturing equipment gives the client a full-cycle production facility for production of densely-sintered clinker. These fixed assets are leased to the client under an investment program of Magnezit Group. The maturity of this leasing transaction is 7 years.

This project is a complex structured transaction: over 20 Russian and foreign companies supply equipment for the production lines. Equipment manufacturing is performed using design documentation custom-developed by the leading design bureaus of the Russian Federation. Delivery, assembly and installation of equipment is scheduled to take 12 months. Equipment will be commissioned into operation after detailed launch and start-up work and acceptance testing to be performed by employees of equipment manufacturing plants and employees of the Rostehnadzor (Russian industrial objects supervision board); employees of Magnezit Group will receive training in operation and maintenance of leased equipment.

As a result of this project Magnezit Group will create a unique production facility that will have no equals in Russia and CIS countries and that will meet the most stringent standards for environmental safety. Implementation of this project will increase the production of the Group’s production facility for manufacturing of periclase (magnesia) clinker compared to present production levels by a factor of over 2.5X – to 130,000 tons per annum.

According to Mr. A. Konoplev, CEO of VTB Leasing, “Considering the project’s parameters and lack of precedent of similar transactions in Russia – we believe this leasing transaction is truly unique. It also confirms the capabilities and willingness of VTB Leasing to enter into leasing transactions of any degree of complexity with its clients. By financing this transaction, VTB Leasing makes its contribution towards developing the real sector of Russian economy – and growth of the real sector is the foundation for improvement of economic situation in Russia”.

Reference information:

Magnezit Group is a recognized global leader in production of magnesium products. For many years the company supplies its products to the base materials sector of the Russian industry (primarily – to metals producers). Magnezit Group includes 15 companies in Russia, China, Germany and Slovakia.

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