MOSCOW & LONDON,  February 2008 – Eurokommerz announced today that in partnership with Deutsche Bank and VTB it has created the securitisation mechanism that allowed to successfully complete a RUB 7.5 billion securitisation financing based upon factored receivables owed by a diversified pool of Russian corporates. Eurokommerz is the leader of the Russian factoring market.
The deal was arranged and managed by Deutsche Bank in conjunction with VTB Bank Europe plc.
The asset-backed finance was provided through a Luxembourg SPV, and its capital structure included subordinated and mezzanine facilities, and senior notes. Standard & Poor’s Corporation has assigned BBB and BB rating to the senior notes and mezzanine facility respectively on its international scale. The transaction is especially notable given current market conditions. It is understood to be the first occasion that factoring receivables have been used to support a term financing.
Gregory Karpovsky, Chairman of the Board of Eurokommerz said: “This is an innovative deal from the point of view of factoring market as well as the Russian financial markets in general. We are the first Russian company to have securitised such short term assets. Having closed the deal in partnership with Deutsche Bank and VTB we created an important precedent and actually opened a new channel, new opportunity of raising financing in the international financial markets. This is crucial during the liquidity crisis”.
Tim Nicolle, Head of the CEEMEA Securitisation Group at Deutsche Bank London commented, “We are delighted to have arranged and closed this innovative deal under very difficult market conditions. It demonstrates the quality of Deutsche Bank’s securitisation and distribution platforms. Putting the transaction together involved very close cooperation between our client, our investors and our structuring and advisory partners.”
Alex Medlock, Managing Director and Global Head of Securitisation, VTB Bank Europe said “we are delighted to have contributed to the securitsation of a new asset class in Russia and would like to pay tribute to the commitment from Eurokommerz, the Arrangers and the team of advisors who combined to make this transaction possible”.
Victor Kisselev, Managing Director of Securitisation and Syndication at VTB Moscow also noted, “We were very keen to offer our structuring capabilities and auxiliary facilities for the Eurokommerz Transaction.’
For further information, please call:
+7 (495) 502 9903
+7 (495) 797 5303
VTB Bank Europe plc.
+44 20 7815 9456
+44 20 7815 9330
Information about the companies:
Eurokommerz is the generally acknowledged leader in the Russian factoring business. The company provides services to approximately 3000 clients established 57 regions of the Russian Federation and CIS.
The shareholders of the Company are management of Eurokommerz and IC ‘TROIKA DIALOG’ in the name of the Troika Capital Partners Company and the Russia New Growth Fund whose beneficiaries are the European Bank for Reconstruction and Development (EBRD) and Temasek Holdings.
The company is a member of the International Factors Group (IFG).
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 77,920 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
VTB Bank Europe plc
# VTB Bank Europe plc is a leading arranger of financings for major companies in Russia.
# As of 31st December, 2006, VTB Bank Europe plc had total assets in excess of GB£ 2.1 billion.
# VTB Bank Europe plc is a UK-registered, Russian-owned Bank.
# VTB Bank Europe plc is authorised and regulated by the Financial Services Authority.
# VTB Bank Europe plc has offices in London, Singapore, and Moscow.