VTB Factoring and Gazprom Energoholding complete the world’s largest factoring transaction

The subject of the transaction was a debt owed by Inter RAO UES to Mezhregionenergostroy JSC, a Gazprom Group company, following performance by Mezhregionenergostroy of construction works on the second power unit of Kaliningrad CHPP-2 and the plant’s subsequent transfer to Inter RAO UES.

The transaction was structured in two months. The debtor is Inter RAO Capital JSC (subsidiary of Inter RAO UES). VTB Factoring has provided financing to Mezhregionenergostroy in the amount of 100% of the assigned receivables without recourse.

“This is Gazprom Energoholding’s first experience of using factoring. The speed at which the transaction was completed was really impressive, and we hope that factoring solutions will be useful for companies of our Group in the future,” said Evgeny Zemlyanoy, Deputy General Director for Economics and Finance at Gazprom Energoholding.

“For VTB Group, factoring is an important product focused on large corporate business. A transaction with the leading Russian company is the best acknowledgment of our success. I am confident of maintaining an efficient and mutually beneficial working relationship with Gazprom Group in the future”, said Yury Soloviev, First Deputy President and Chairman of VTB Bank Management Board.

“For the VTB Factoring team and for me personally, this transaction is a historic event. We have completed the largest public transaction in the global factoring history in terms of one-time financing amount. Besides, it is also the largest transaction by portfolio size for the Russian factoring market”, added Anton Musatov, General Director of VTB Factoring.