IDGC of North-West has summarised the results of a regular open tender for the right to conclude credit line contracts.

IDGC of North-West has summarised the results of a regular open tender for the right to conclude credit line contracts.

On the basis of the results of the tender for financing of the activities made by IDGC of North-West, VTB of North-West will give RUR 830m on credit; Bank of Moscow, RUR 500m, and Globex Bank, RUR 870m.

“In the time of the financial crisis, IDGC of North-West, as many other enterprises, has problems with finding loan money. At the present moment, when the situation in the bank sector has more or less stabilised, the banks again can give credits to large enterprises with a stable financial position”, said Anna Povetkina, Head of the Department of Finance and Corporate Financing, IDGC of North-West.  However, according to her, the terms of crediting ‘remain rather tough’. 

On 18 June, 2009, the company received applications for participation in the open tender for the right to conclude credit line contracts with the total sum of RUR 2.3bn; the total sum of applications for all lots was RUR 3.13bn. VTB North-West, Gazprombank, Bank of Moscow and Globex Bank took part in the tender.

Applications for participation sent by VTB North-West, Bank of Moscow and Globex Bank corresponded to the requirements and terms set out in the tender documentation.  

The first two lots (credit lines of RUR 500m and RUR 330m) received applications from two participations of the tender: VTB North-West and Globex Bank. Under the federal law ‘On applications for delivery of goods, execution of works and rendering of services for the state and municipal benefit’ as of 27 July, 2005, the tender was considered to be valid, and both participants of the tender were allowed to take part in the trade. As a result, VTB of North-West proposed the lowest price – 17.4% per annum.

The tender of other lots was considered invalid, because only one application for each lot was sent to the company. The applications of sole participants of the order placement correspond to the requirements of the tender documentation. The company plans to conclude contracts with them.

IDGC of North-West, as a natural monopoly enterprise, may enter into credit contracts only on the basis of the results of the open tender under federal law No.94-FZ as of 21 July, 2005.