VEB's Management Attends the Launch of the New Ford Kuga SUV at Ford Sollers
Vnesheconombank's Deputy Chairman – Board Member Tatyana Sakharova visited the Ford Sollers joint venture established with financial support from Vnesheconombank as part of her working trip to Tatarstan.
She participated in the launch ceremony for the new Ford Kuga SUV in Alabuga (special economic zone). The ceremony was attended by President of the Republic of Tatarstan Rustam Minnikhanov.
As part of Ford's strategy for renewing and adapting its model range, from December 2016, Ford Sollers is to start manufacturing the new Ford Kuga smart SUV that will be equipped with ERA-GLONASS emergency call system and a number of innovative driver assist technologies. Before the official launch, the new model will undergo comprehensive testing and will be adapted for Russian climate and road conditions.
In her welcome speech, Tatyana Sakharova said: “I expect our partnership with Ford Sollers will continue: we, as a development bank, find it important to keep pace with our clients, help them grow, support their efforts so that in the end the project will succeed, create new jobs and generate tax revenues.”
The Ford Sollers joint venture has been implementing the project for the modernisation and expansion of manufacturing facilities, production of Ford cars and engines with Vnesheconombank's financial support since 2011. The total project value amounts to RUB 115 bn, with the Bank’s commitment standing at RUB 43.8 bn.
Since then, two plants have been fully modernised, five new Ford car models have been launched and, in 2015, an engine manufacturing plant was constructed and put into operation in the Republic of Tatarstan. In Vsevolozhsk, Leningrad Region, two renewed models are now manufactured. At the moment, Ford Sollers produces seven Ford car models: Focus, Mondeo, Kuga, Transit, Explorer, Ecosport, Fiesta.
In the Republic of Tatarstan, Vnesheconombank participated in the implementation of 6 investment projects for a total of RUB 297 bn. The Bank has provided over RUB 172.7 bn to finance them. At the moment, Vnesheconombank is considering three projects for a total of RUB 115.8 bn.
Sergey Gorkov takes part in official opening of Western High-Speed Diameter Central Seсtion in St.-Petersburg
On 2 December 2016, the Chairman of Vnesheconombank Sergey Gorkov took part in the opening ceremony of the Central Seсtion of the Western High-Speed Diameter highway (WHSD) in St.-Petersburg. The opening ceremony was attended by Russian President Vladimir Putin.
Having provided RUB 25 billion worth of funds for a term of more than twelve years, i.e. amounting to approx. 50% of the syndicated ruble loan raised in 2012 to deliver the project, VEB has become one of the senior lenders for the construction of the WHSD Central Seсtion.
WHSD is one of the major public-private partnership (PPP) projects in road construction financed by Vnesheconombank. According to Sergey Gorkov, co-financing of the WHSD project is something the Bank is quite proud of.
The WHSD Central Seсtion project is being implemented in compliance with a 30-year PPP agreement signed with the St.-Petersburg Municipal Government and its 100% subsidiary ZSD Joint-Stock Company. The contractor in charge of this landmark transport project is Northern Capital Highway Consortium.
The highway is of paramount importance for the capital of the North: it will allow for diverting the bulk of traffic away from the historic centre of the city. On a nationwide scale, the highway, as a part of the North-South international transport corridor, significantly contributes to the mobility of Russia's Northwestern Federal District population.
The WHSD main route length is 46.6km, with a total length including exit roads and junctions exceeding 70km. The project provides for fifteen road junctions and 4-8 traffic lanes. The highway would help reduce traffic in the historic centre, ring road and road network of St.-Petersburg, and allow for motorists to traverse the city in less than twenty minutes.
In compliance with the conditions of Eurobond issue and by order of the Russian Ministry of Finance, State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” transferred USD 71,250,000.00 worth of funds to the National Security Depository.
The funds are remitted in payment of interest on a USD 3bn bond issue made by the Government of the Russian Federation in 2016 and maturing in 2026.
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.