VEB signs financing agreements with Sukhoi

This story is sourced from

Russia's State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank (VEB) has entered a series of agreements with Sukhoi Holding and subsidiary Sukhoi Civil Aircraft Company (SCAC) at the MAKS 2009 Air Show on strategic cooperation in civil and military aviation.

An agreement on strategic cooperation in the field of commercial aviation was signed with SCAC aiming at development of long-term, effective and mutually beneficial cooperation in commercial aviation. Under this agreement, the parties intend to cooperate in setting up financing for the future investment programmes of SCAC, extend the financing Sukhoi Superjet 100 programme and establishing modern competitive sales finance systems for Sukhoi Superjet 100 at both domestic market and worldwide through a variety of financial instruments.

The agreement follows the signing of two credit lines in June 2008. VEB and Sukhoi Company agreed to finance the program to develop a new Superjet 100 type, certify the aircraft and launch mass production as well as establish an aftermarket sale market through two credit lines ($61 million and a €34 million) that mature in 2016.

SCAC was founded in 2000 to develop new regional aircraft projects. Its shareholders are the Sukhoi Holding owing 75% -1 share and the Italian Alenia Aeronautica holding 25% +1 share since 7 April 2009.

VEB also committed to support the Sukhoi Su-35 fighter programme. Under the agreement, the parties intend to cooperate in setting up the financing of investment programmes of both Sukhoi Holding and its affiliated companies and design centers to develop its Su-35 multirole fighter as well as to unwind its mass-production. VEB will provide 3.5 billion rubles ($108.4 million) to Sukhoi to finance the first stage of the design and production process of the Su-35 fighter.