Vnesheconombank to continue improving the regulatory framework for syndicated loans
Vnesheconombank's Legal Directorate took part in the 8th St. Petersburg International Legal Forum.
The Bank organized the session “Vnesheconombank’s role in transforming Russian economy: changes in regulation, the project financing factory, syndication, high technology and export projects” to encourage public discussion of the new federal laws approved by the President at the end of 2017 creating the regulatory framework for Vnesheconombank’s implementation of its new Strategy 2021 and unlocking the potential of syndicated loans. The session was moderated by Mikhail Rasstrigin, Deputy Economic Development Minister.
Vnesheconombank’s Senior Vice President and Head of Legal Directorate Igor Krasnov told about changes made to the Law “On Bank for Development”. “The amendments introduced to the Federal Law “On Bank for Development” allowed us to substantially revise the options available to Vnesheconombank for investing in Russian economy and to launch the Bank’s new business model while addressing the existing issues. Moreover, the new legislation sets in law tools which can be used by Vnesheconombank to provide comprehensive financial and guarantee support for projects and transactions aimed at expanding supplies of high-tech products to foreign markets. The amendments are not just some minor changes. In effect, they form a new version of the law. This will allow Vnesheconombank to focus on its investment priorities and use new forms of project finance. The new law establishes a uniform risk management system in VEB Group and determines the development strategies of the bank’s core subsidiaries. Importantly, the law provides for a number of new tools such as syndicated lending, mezzanine financing, partner financing and investment consulting. Thanks to this measures, Vnesheconombank will be able to efficiently deliver its development strategy 2021 and to become a leader in long-term financing for Russia’s most important economic development projects,” said Igor Krasnov.
“Vnesheconombank has already been playing an important role in realising the potential of syndicated lending. Vnesheconombank took an active part in developing the federal law on syndicated loans that took effect in February 2018. The need for a legislative framework for syndicated loans was seen both by the banking community and government authorities,” said Roman Fomin, Senior Managing Director of Legal Support Department, Vnesheconombank’s Legal Directorate. “The law, inter alia, establishes the syndicated loan concept and expands the composition of participants on the primary syndicated loans market.”
Vnesheconombank and TUS-Holdings will cooperate to advance Chinese and Russian innovative and high technology companies
Vnesheconombank and TUS-Holdings Co. Ltd. (TUS-Holdings) signed a Memorandum of Understanding with a view to formalize the framework of cooperation to advance Chinese and Russian innovative and high technology companies to respective markets of Russia and China. To reach this objective the MoU provides for various mechanisms including creation of joint science and technology centers, investment platforms, implementing co-investments in projects of mutual priority as well as other forms of cooperation in the area of private equity.
The MoU was signed by Senior Vice President of Vnesheconombank Daniil Algulyan and the Chairman of TUS-Holdings WANG Jiwu on the sidelines of the St. Petersburgh International Economic Forum – 2018.
“Signing of this Memorandum is an important step in the development of cooperation with the leading multipurpose Chinese holding company with a vast experience in the field of incubation and commercialization of technological solutions as well as operation and management of industrial parks,” said Daniil Algulyan. “This partnership offers new opportunities for supporting Russian companies exit on the Chinese market.”
As Mr. WANG Jiwu, Chairman of TUS-Holdings noted: "The signing of the MoU between VEB & TUS-Holdings is a remarkable contribution to the development of mechanisms supporting innovative and high technology companies in China and Russia which will thereby facilitate the economic growth of the two countries. Under the current international situation, the close integration of high-tech companies in China and Russia has long-term strategic significance; The extensive and in-depth cooperation between TUS-Holdings and VEB has established a platform and conditions for this integration. It is hoped that the politicians and the entrepreneurs from both countries will pay more attention to the cooperation between TUS and VEB because this cooperation is not about the two companies themselves."
TUS-Holdings Co. Ltd. (TUS-Holdings) is a holding company specializing in innovations. Incorporated under the laws of the People’s Republic of China. Participates in equity of over 800 companies; over 300 business incubators under management. Established in 2000 on the base of TUS Park, which is a leading center of innovations and new technology development. TUS Park was founded by the graduates of Tsinghua University and is the largest university science park in the world. TUS Park location in Beijing hosts 1500 companies. Total assets under management amount to 200 bn RMB (~31 bn USD).