11.06.2020
The Ulyanovsk Automobile Plant, a subsidiary of SOLLERS Group, is drawing down the credit line provided by the largest Russian bank – PJSC Sberbank – as part of the state support program for systemic companies.
Loans amounting to 3 billion rubles will be used to pay salaries and to purchase raw materials, supplies and components, as well to meet other obligatory payments.
“The strong challenges that the automotive industry faces amid the COVID-19 pandemic and falling demand have required new effective solutions. Preferential loans provided to systemic companies to finance working capital and current activities is an important state support mechanism that will ensure the stable operation of SOLLERS Group companies and companies in the automotive supply chain. We are grateful to the Government of the Russian Federation and our partner Sberbank for their support in this field,” said Nikolay Sobolev, CEO at SOLLERS PJSC.
“We have been working closely with SOLLERS for many years and are pleased to provide the company with the support needed in these difficult times. It should be mentioned that we managed to implement the deal in the shortest possible time – in less than a week. Our credit line will allow the company to reduce interest expenses by minimising unplanned costs incurred due to the crisis,” commented Vladimir Sitnov, Senior Vice President at Sberbank.
It should be remembered that SOLLERS was included in the list of systemic companies in April 2020.
The credit line for working capital financing, approved by Decree No. 582 of the Government of the Russian Federation dated 24 April 2020, is one of the key actions to support systemic companies.
The loans are granted for a period of up to a year at a maximum interest rate of 5%. The loan amount is limited to the average monthly revenue of the borrower minus average monthly depreciation and average monthly net profit, and shall not exceed 3 billion rubles. Companies can use the loans to cover essential costs including salaries, insurance premiums, rent of premises and equipment, repair of equipment, utilities, transportation costs, and financing of R&D.
