On 1 December 2016, State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” completed buyback from investors of its Series BO-11 Bonds.
As a result, the Bank bought back 1 mn bonds worth RUB 1 bn at par.
Series BO-11 Bonds were offered on 4 September 2014 with a maturity of 5 years and at a coupon rate of 9.75%.
Vnesheconombank Finances Export Supplies of Five Sukhoi Superjet 100 Jetliners to Ireland
Vnesheconombank (VEB), JSC Sukhoi Civil Aircraft (SCA) and Superjet International S.p.A (SJI) met in CityJet's headquarters in Dublin (Ireland) to enter into a Memorandum of Cooperation for financing Sukhoi Superjet 100 supplies.
The document was signed by VEB's Deputy Chairman – Board Member Nikolay Tsekhomsky for Vnesheconombank, SCA's President Kamil Gaynutdinov for Sukhoi Civil Aircraft and SJI's CEO Nazario Cauceglia for Superjet International S.p.A.
The parties agreed to develop cooperation and provide funding for supplies of five Sukhoi Superjet 100 planes in 2017. The jetliners are to be manufactured by JSC Sukhoi Civil Aircraft and customized by Russian-Italian joint venture SuperJet International S.p.A. for CityJet.
Vnesheconombank financed the delivery of three planes to the Irish regional airline in 2016. The fixed-price contract between JSC Sukhoi Civil Aircraft and Cityjet provides for the supply of 15 planes. Additional 16 planes may be delivered under an option.
Nikolay Tsekhomsky commented as follows: “The Sukhoi Superjet 100 export deal is a signal for the European aviation market that a new strong player has entered. Today, both European passengers and leading airline companies can see Sukhoi Superjet 100 in action. We are receiving positive feedback and are convinced of its future success in the region. Vnesheconombank will strive to support strategic export supplies as this helps to secure a strong position for Russian products on the global market.”
President of JSC Sukhoi Civil Aircraft Kamil Gaynutdinov: “Cooperation with CityJet is an example of successful implementation of plans declared by JSC Sukhoi Civil Aircraft and our focus on the customer's demands: the planes have been scheduled for flights and are to generate profit for the airline company immediately after delivery. Today, CityJet operates three Sukhoi Superjet 100 aircraft. The expansion of the fleet and its successful operation will help to promote the plane on a global scale and boost interest in it. The systematic support by our long-term partner Vnesheconombank is one of the key ingredients to our success.”
Since Vnesheconombank is a key partner for export projects in the Russian aviation sector, the implementation of the Memorandum will contribute to further strengthening and development of the partnership between Russian exporters and international buyers.
Sukhoi Superjet 100 is a new-generation regional passenger jet manufactured and supplied by JSC Sukhoi Civil Aircraft with financial support of Vnesheconombank.
In compliance with a decision by the Board of Directors of VEB Leasing, Mr Yuriy Gaichenya has been appointed Acting Director General. The former Director General Alexander Dymov is leaving the company for personal reasons.
“We would like to thank Alexander for his extensive contribution to the Company. He has managed to stabilize the situation in the Company and completed a number of deals. At the moment, all the decisions necessary to increase the Company’s capital and major approaches to identify a new strategy have been made and developed. In future, the Company intends to focus on those national industries that are of priority to VEB, namely, infrastructure, production sector and exports”, Artem Dovlatov, Chairman of VEB Leasing’s Board of Directors, said.
As at 1 January 2016, VEB Leasing with its RUB 710 billion leasing portfolio accounted for a 34% share in Russia’s leasing market. The Company ranks first by a leasing portfolio of railroad machinery, motor transport and equipment, and second in terms of aircraft leasing.
Vnesheconombank Fulfills Its Obligations Under Domestic Series BO-02 Bonds Put Offer
State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” on November 28, 2016 fulfilled its obligations to purchase bonds from investors in the course of the put offer under its RUB 9 billion Series БО-02 exchange bonds issue.
Under the current put offer Vnesheconombank bought 3 990 777 bonds with the total par value of RUB 3 990 777 000,00.
The coupon rate of the bonds was set at 9,75 % with a maturity of 1 year.
Arrangers of the БО-02 exchange bonds put offer and secondary placement are Bank GPB (JSC) and CJSC “Sberbank CIB”.
Meeting between Chairman of the Government of the Russian Federation Dmitry Medvedev and Chairman of Vnesheconombank Sergey Gorkov
Excerpt of transcript:
'Last mile' projectsOver the next 2 years, Vnesheconombank will provide funding to more than 20 'last mile' projects
Dmitry Medvedev: Sergey Nikolaevich, despite experiencing some financial difficulties, VEB continues to operate as a lender, a corporate entity and a development institution. What projects do you intend to deliver in the near future and which are at the completion stage?
Sergei Gorkov: Currently, the Bank’s portfolio comprises over twenty projects financed up to 80-85%. For various reasons, these projects have been suspended. Primarily, it was due to insufficient liquidity and funding. Now, we are in a position to begin financing these projects again.
Dmitry Medvedev: What projects are these?
Sergei Gorkov: Well, for example, one is a pharmaceuticals project: an infusion solutions plant in Kaluga. We see a way to additionally invest some several million rubles in the project and commission the plant as early as in February.
Another example is a power plant in Tutaev, not far from Rybinsk. Similarly, a small amount of funding is required, about a hundred million rubles, then we could commission the power plant. We are ready to do it before January to get it up and running for the winter season.
Overall, we have more than twenty such projects, which vary in the amount of funding required, with the total for all project financing approximating to 150 billion rubles. All these projects could be commissioned in the next two years. We believe it would be a significant contribution to the national economy at 0.2-0.3% of the GDP.
The projects are spread across thirteen Russian regions, from Khabarovsk to Kaliningrad, and nine industries, in particular, power generation, metallurgy, machine building, agribusiness, pharmaceuticals, and chemicals. According to our estimates, the projects would also generate some 23 thousand new jobs.
Dmitry Medvedev: Well, I believe every endeavor should be made to successfully complete these projects.