Red October Steel Works signs syndication

VTB Bank Europe has signed a US$80mn medium-term structured finance facility for Volgograd Steel Works known as Red October. VTB Bank fully underwrote and funded the facility, acting as sole mandated arranger and bookrunner, and the deal was then syndicated out to the international market.

The facility carries a tenor of five years, and is secured by assignment of proceeds under export contracts with foreign buyers.

Joining the facility as lead arrangers are Erste Bank der Osterreichischen Sparkassen, HSH Nordbank (London Branch), and VTB Bank (Austria). Banque Soci&eaute;té GénéraleOctober is in Volgograd in Russia and one of Russia's leading specialist steel producers. Red October was acquired by Russpetstal in March 2007.