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18 March 2008 - Gide Loyrette Nouel Moscow wins industry accolades for pioneering finance deal:
Gide Loyrette Nouel is pleased to announce that the financing of ZAO Profit on which Gide Moscow acted as a legal advisor to the syndicate of banks, has been awarded "Deal of the year 2007" by three leading international finance magazines:
 Trade Finance,
Trade & Forfaiting Review, and
Global Trade Review.
In this transaction, Gide Moscow acted for mandated lead arrangers ING Bank, Commerzbank, Natixis and Raiffeisenbank Austria, on a RUB 2.8 billion loan facility to ZAO Profit secured by an assignment of domestic receivables.
ZAO Profit is a major Russian metal trading company which consolidates 27 scrap metal collection entities across 16 regions of Russia. In 2006, ZAO Profit's revenues amounted to approximately US$1 billion. The loan facility was split into two tranches: (i) a two-year RUB 1 billion loan facility with a 12-month extension option and (ii) RUB 1.8 billion tranche revolving facility, both of which being structured as assignment of receivables under the scrap supply contract between ZAO Profit and Magnitogorsk Iron and Steel Works.
This is the first transaction in Russia secured by the assignment under Russian law of domestic Russian receivables under an off-take contract. Trade & Forfaiting Review called this "quite a courageous move" which will "undoubtedly become more common in the future".
Gide Moscow senior associate Grigory Marinichev, the lead lawyer to the banks on this deal, commented: "To date, the banks have been rather sсeptical of security structures involving assignments of contracts with domestic off-takers and governed exclusively by Russian law. The "Profit" transaction will hopefully give impetus and comfort to other financings employing a similar security structure."
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