05.20.2016

RUB 100 in factoring financing for Russian steel

Severstal and VTB Factoring provided RUB 100 bn factoring financing for Russian steel during the first five years of their agreement. This strategic partnership includes two key areas: the sale of receivables using factoring without recourse, and financing of accounts payable to Severstal’s suppliers.

Anton Musatov, CEO of VTB Factoring, commented: "We are proud to partner with Severstal, one of the world's largest vertically integrated steel and mining companies. Since the agreement to provide factoring services was signed on 20 May 2011, the business has grown significantly. For VTB Factoring, the partnership with Severstal is a leading model for factoring in the industrial segment."

Irina Koltsova, Head of the Financial Support, Severstal Treasury Department, said: "We value VTB’s professionalism, flexibility and reliability. Over the last five years, the relationship has provided successful factoring financing for all our needs, even during challenging times, such as late December 2014, factoring financing was provided as necessary. As a result, we were delighted to nominate VTB for the 2015 award for total reliability as a partner supporting sales in any market situation."

Reference note:

Severstal PJSC is one of the world's largest vertically integrated steel and mining companies with assets in Russia, Belarus, Ukraine, Latvia, Poland, Italy, and Liberia. The company's shares are listed on the MICEX-RTS Exchange. Its global depositary receipts are traded on the London Stock Exchange. In 2015, the company's revenue amounted to $6.396 million. Its EBITDA stood at $2.096 million. In 2015, 11.45 million MT of steel were produced. www.severstal.com.