Lovells has been instructed by new client Russian Promsvyaz-bank on the creation of a $20bn (£11bn) debt financing package that will fund corporate lending through a bond issuance programme.

The 'ready-made' package, led by Lovells capital markets partner Andrew Carey, saw Promsvyazbank establish a Dutch special purpose vehicle to issue a series of bonds up to the value of $20bn to fund loans to Russian corporates.

Other members of the Lovells team include senior associate Michael Pugh and Moscow capital markets associate Jonathan Malim, while Amsterdam finance partner Ken Breken and tax partner Anton Louwinger advised on Dutch law.

The bonds, which will be backed by the corporate loans, use standardised documentation and a single vehicle.

Bank of New York (BoNY), acting as trustee, has been assigned the right to pursue payment of the bond in the event of default. BoNY was advised by Lovells capital markets partner Tauhid Ijaz.

The top 10 London firm secured the instruction after acting on similar packages for Russian banks Trust Investment Bank and Alfa Bank in 2004 and 2005 respectively.

Pugh told Legal Week: "Promsvyazbank now has a structure which is ready and programme documentation in place, so all that needs to be negotiated for each issue under the programme is essentially the loan agreement and supplement to the trust deed."

The deal comes as growing numbers of Russian corporates look to tap the international capital markets.

A key current deal sees Rosneft putting the finishing touches on its controversial multi-billion float on the London Stock Exchange, generating lead roles for Cleary Gottlieb Steen & Hamilton and Linklaters.

Lovells has built up an established client base of Russian lenders, including Rosbank, International Moscow Bank and Bank of Moscow in addition to foreign institutions such as Commerzbank and Citibank.