Vnesheconombank has become the winner of the global awards run by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and the European Organization for Sustainable Development (EOSD). The Bank was honored for its Sustainability Roadmap in the category of Outstanding Business Sustainability Achievement.
The award ceremony took place during the Sustainable Finance Conference (July 2016, Karlsruhe, Germany) attended by 100 delegates from 35 different countries.
Vnesheconombank's Sustainability Roadmap was prepared in conformity with global sustainability standards and initiatives and using best practices of foreign financial institutions. The Roadmap provides for a set of measures aimed at improving the Bank’s sustainability competencies to the level of global financial institutions. Integration of the principles established by the Vnesheconombank's Roadmap into the Bank's operations will contribute to the successful delivery of its functions as a national development institution.
The award is the fourth ADFIAP award won by the Bank. The VEB Group's sustainability report 2011 received the ADFIAP award in the 'Best Sustainability Report' category; in 2014, the Bank was awarded a diploma for participation in construction and renovation of small-scale hydro power plants in the Republic of Karelia; in May 2016, Vnesheconombank became the winner in the category 'Infrastructure Development' for its participation in the construction of the Boguchany Hydroelectric Power Plant.
Vnesheconombank has been actively supporting development projects relying on the sustainability principles, established by the Bank to ensure its efficient operation.
The Association of Development Financial Institutions of Asia and Pacific (ADFIAP) was established in 1976. Today, it is one of the biggest global associations comprising 131 member-institutions from 45 countries. Vnesheconombank joined ADFIAP in January 2013 and now is a member of ADFIAP's Board. The Association seeks to coordinate the activities of development financing institutions to secure social and economic development of the region.
The ADFIAP Awards Program started in 1997 when ADFIAP hosted the Summit on Development Finance in Manila. From then on, the awards ceremony has been held annually. The awards recognize both individual and institutional contributions to the national development.
On closing a bid book for participation in placement of Vnesheconombank’s series PBO-001R-04 stock exchange-traded bonds
On 19 July 2016, state corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” closed a bid book for its Series PBO-001R-04 stock exchange-traded bond issue. Investors have been offered stock exchange-traded bonds with the total par value of RUB 20bn to be placed in compliance with the Stock Exchange Bond Programme and maturing in three years from the date of placement.
The bid book was opened on 19 July 2016 with the coupon rate initially ranging from 10.50-10.75% p.a. A heightened interest in its stock exchange-traded bonds, which approximated toRUB 35bn, enabled Vnesheconombank to slash the coupon guidance several times. On closing the bid book, the coupon rate was fixed at 10.15% p.a. corresponding to the yield-to-maturity of 10.41%.
Overall, some 50 bids were made by a wide range of investors, of which banks accounted for 38%, asset management and investment companies – 58%, and insurance companies – 4%.
The bonds will be placed on 26 July 2016 through public subscription at the Moscow Stock Exchange.
The issue satisfied the Bank of Russia’s Lombard List requirements.
The National Settlement Depository is the depository of the issue.
Sberbank CIB, Region Brokerage Company, Bank ZENIT and Russian Agricultural Bank are the arrangers of the issue.
Today, Vnesheconombank signed agreements with Gazprom Group to sell a shareholding and ADRs in the amount of 3.59% of Gazprom’s authorized capital.
According to Sergey Gorkov, Chairman of Vnesheconombank, the transaction is to significantly enhance VEB’s liquidity.
VEB became a shareholder in Gazprom in late 2008 when the Bank was implementing measures to bolster the economy amid the financial crisis and, in particular, buying securities of Russian companies to support their quotations. In 2007, Vnesheconombank increased its shareholding in Gazprom by 2.7% by acquiring ADRs for ordinary shares in Gazprom from German E.Om.
Pellet production launched in Krasnoyarsk Territory with Vnesheconombank’s financial support
A fuel pellet production complex was put into operation in Verkhnepashino, Krasnoyarsk Territory. An official ceremony marking the launch of the complex was attended by Victor Tolokonsky, Krasnoyarsk Territory Governor, and Vnesheconombank’s officials.
With its recycling capacity approximating to 200,000 cbm of sawdust p.a., the fuel pellet production will not only contribute to efficient waste recycling but also improve environmental conditions in the region.Fuel pellets are being considered for export to the European market.
The production complexisa part of a project aimed at the construction and modernisation of value-added wood product processing facilities in Sosnovoborsk and Verkhnepashino, Krasnoyarsk Territory. The project is being delivered by SiblesProjectLimited Liability Company. Apart from the fuel pellet production, the project comprises a sawmill put into operation in 2015, and a complex to manufacture goods for wooden house construction industry scheduled for commissioning in 2017.
The total project value is estimated at RUB 5.4bn with Vnesheconombank’s commitment approximating to RUB 4.3bn. VEB has been financing the project since 2012.
The project helps boost social and economic development in the region:itscurrent headcount is 178, and some 250 new jobs are to be created during the project.
Overall, Vnesheconombank participates in financing nine major timber processing projects with the total value of some RUB 130bn.
To deliver investment projects intimber processing industry, Vnesheconombank has established a specialized structural unit, Timber Processing ComplexDivision.
On closing a bid book for participation in placement of vnesheconombank’s series PBO-001R-03 stock exchange-traded bonds
On 13 July 2016, state corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” closed a bid book for its Series PBO-001R-03 stock exchange-traded bond issue. Investors have been offered stock exchange-traded bonds denominated in US dollars with settlement in Russian rubles with the total par value of $300mn to 500mn to be placed in compliance with the Stock Exchange Bond Programme and maturing in five years from the date of placement.
The bid book opened on 13 July 2016 with the coupon rate initially ranging from 5.50-5.75% p.a. A heightened interest in its stock exchange-traded bonds, which exceeded $1bn, enabled Vnesheconombank to slash the coupon guidance three times when collecting bids. On closing the bid book, the coupon rate was fixed at 4.9% p.a. corresponding to the yield-to-maturity of 4.96%.
Given a strong investor appetite, a decision was taken to increase the size of the offering to $600mn.
Overall, upward of 70 bids were made by a wide range of investors, of which banks accounted for more than 72%, asset management and investment companies – 25% and private investors – some 3%.
The bonds will be placed on 21 July 2016 through public subscription at the Moscow Stock Exchange.
The National Settlement Depository is the depository of the issue.
Nikolay Tsekhomsky, First Deputy Chairman of Vnesheconombank, said, “It is already the third bond placement successfully completed by Vnesheconombank on the domestic bond market this year. Notably, a wide range of local investors have expressed their intense interest in the structure devised for issuing USD-denominated bonds with settlement in Russian rubles. In particular, we have noted an increased interest of private investors in this issue, which is indicative of a great potential of the instrument. This FX denominated bond is a unique innovative instrument at our market that enables local investors to acquire for their portfolio a quality currency asset for Russian rubles and in the Russian jurisdiction”.
VTB Capital, Gazprombank and Sovcombank are the Lead Managers of the issue.