French banking group Societe Generale (SG) will provide an EUR171.5m 7-year loan to AvtoVAZ, the company said in a statement today.

AvtoVAZ will use the funds to finance license agreements that the company concluded with  Renault in October 2008.

Under the agreements, which are worth a total of EUR220m, AvtoVAZ expects to buy licenses from Renault for two types of engines, as well as for R90 and F90 Logan cars and the B0 platform.

The licenses will give AvtoVAZ the rights for assembly and distribution, Prime-Tass reported.

Of the total, AvtoVAZ has already paid EUR55m in advance for the licenses, the report added.