OREANDA-NEWS. October 27, 2008. KAMAZ signed a credit agreement of receiving a three-year syndicated loan for the sum of EUR 135 million at a rate EURIBOR +3.5 percent interest per annum. The organizers of the credit are 6 banks: CITIBANK, BNP PARIBAS, COMMERZBANK, ING BANK, NORDEA BANK, BSGV. The first tranche for the sum of EUR 123 million will be received in the nearest future. The means will be used for financing of investment projects, refinancing of short-term banking credits and other corporate aims.

In spite of the liquidity crisis on the Russian market, long-term credits in western banks are still available for high-class borrowers like KAMAZ, though, to be sure, they became more expensive. However, for “little” borrowers, for instance, for independent KAMAZ dealers access to financial resources became more difficult and expensive. In this situation KAMAZ expects the state to render support and send means for financing bank lending and leasing systems, and also to help purchasers of automotive equipment providing the Russian auto producers with funds for extension of goods credits for final buyers. KAMAZ evaluates needs for these means at the fourth quarter 2008 – 2009 at the level of RUB 15-20 billion.

For 9 months of 2008 KAMAZ sold 42 thousand trucks. It is by 10% more than for the same period of 2007 when 38 thousand units were sold. The domestic market share of KAMAZ remained at the last year level and made about 30% for 9 months of 2008. Taking into account slowing down growth rates of the Russian car market in the fourth quarter of 2008, KAMAZ also plans some slowdown of production growth rates. Sales at 2008 are planned at the level of 55 thousand vehicles that is by 6% more than in 2007.

According to initial data, the consolidated gain of KAMAZ Group by IAS for the first half-year 2008 made RUB 51 billion (1 half-year 2007: RUB 44 billion) that is by 16% more than in the first half-year 2007. Net profit of Group grew by 21% and made for a half-year RUB 3.9 billion (1 half-year 2007: RUB 3.2 billion). Net debt of Group as of June 30, 2008 made RUB 7.3 billion (December 31, 2007: RUB 8.4 billion).