MOSCOW Russian state development bank Vnesheconombank, or VEB, is continuing to sell down its 5.02 percent stake in Airbus's parent EADS EAD.PA with the proceeds destined for local plane maker Sukhoi, Vedomosti newspaper said on Friday.
In a July 26 filing in the Netherlands, where EADS is registered, VEB had already reported a reduction in its stake to 2.88 percent, the paper said. For a URL link to the filing use: tinyurl.com/q2otggn
The paper said this sale would have been worth 763 million euros ($1 billion) and after going below the 3 percent threshold the bank is not required to inform the market of further sales, the paper said.
Funds raised from the sale will be channeled towards Sukhoi Civil Aircraft, Vedomosti said, citing a source.
Sukhoi Civil Aircraft is looking at debt restructuring options to support the Superjet, a mid-sized aircraft project that has faced delays and suffered a deadly crash on a test flight in Indonesia.
Sukhoi's debts stand at more than $2 billion, including a $1 billion credit line with VEB, the aircraft maker recently said.
Sukhoi was not immediately available for comment, while VEB declined to comment.