Vneshtorgbank signed an agreement on cooperation with the Troika Dialog investment company. Andrey Kostin, president and chairman of the Executive Board of Vneshtorgbank, said at a news conference after the signing today that within the framework of this agreement the parties agreed to cooperate on the corporate bond market. For example, the agreement provides for preparation of mutual proposals and the implementation of projects dealing with the offering of bonds. Kostin mentioned the issue of AvtoVAZ bonds, totaling RUR1.5bn ($47.35m), before the end of 2002 as an example of the implementation of joint projects.
Troika-Dialog President Ruben Vardanyan remarked for his part that according to preliminary estimates, the volume of joint projects of issuing bonds in rubles would exceed RUR5bn ($157.83m) before the end of the first quarter of 2003. According to him, the agreement will allow the provision of services dealing with bond placement for clients at a principally new level. For example, a rather low placement charge will be available due to the broad client base of the investment company and therefore, the high demand. The agreement will also allow an increase in liquidity, which Troika Dialog can support.
Kostin added that many Russian companies planned no only to issue bonds in rubles but also to issue Eurobonds, but these projects are currently hindered by an unfavorable situation on the global stock market.