Renault and Rostec will convert 61.4 billion RUR debt of AVTOVAZ to capital

Renault and Rostec will convert 61.4 billion RUR debt of AVTOVAZ to capital

Finmarket – French car manufacturing giant Renault and Rostec Group have assigned 61.4 billion rubles worth of receivable accounts and loans of the Dutch Alliance Rostec Auto BV (joint venture of Renault with Rostec, which controls AVTOVAZ) for conversion into new shares of PJSC AVTOVAZ, as stated by Renault.

Renault has added that an additional issue of shares is currently in progress at AVTOVAZ by private subscription, which will be completed in April 2018. Renault and Rostec have assigned 30.7 billion rubles worth of debts. “The 61.4 billion rubles worth transaction is intended to replenish the equity capital of AVTOVAZ, being a major step in the recapitalisation process, which began in December 2016” – as noted by the French manufacturer.

As reminded by Renault, the recapitalisation is being carried out within the framework of the financial recovery programme of AVTOVAZ, alongside the modernisation of production and the renewal of the model range.