VTB Factoring has signed a factoring agreement with Energomera Electrotechnical Plants, a subsidiary of the diversified industrial company Energomera. The initial funding limit is over RUB 300 million.
Within this limit, VTB Factoring will finance the delivery, installation and adjustment of control and metering systems and automated electricity accounting systems at Siberian power generating companies.
"Factoring is becoming increasingly popular among regional companies, which use it in combination with lending services. This transaction is being implemented with active support from colleagues at the bank’s corporate branch in the North Caucasus Federal District. I am confident it is the beginning of a long and fruitful partnership between VTB Factoring and one of southern Russia’s largest diversified holding companies. We’re especially pleased to be working in the sphere of factoring energy services contracts, which we have been actively promoting," said Corneliu Robu, Head of Client Relations at VTB Factoring.
"Factoring is among the financial instruments we have been using for the past few years, and our cooperation with VTB Factoring will help us streamline our financial flows," said Energomera CFO Lyudmila Fartusova.
Factoring helps suppliers increase the number of clients, sales and working capital and deal with cash shortage without increasing their accounts payable.
Energomera is a corporate client of VTB Group in the North Caucasus Federal District. The bank has loaned it over RUB 850 million.
Energomera Electrotechnical Plants is a subsidiary of the Energomera Concern and a leader in the Russian market of electrotechnical equipment and energy control and metering systems. The plants annually manufacture over three million electricity meters or one third of all electricity meters installed in Russia.