State Duma Gives Third Reading Approval to New Legislation on VEB Transformation
The State Duma passed a third reading of amendments to the federal law on the development bank and to the Budget Code, introducing the role of VEB.RF as a coordinator of development institutions.
Additionally, the new legislation changed the name of Vnesheconombank to State Development Corporation VEB.RF. The new name reflects the role of VEB in carrying out the tasks assigned by the Russian President and the Russian Government. An important part of the amendments approved by the lower house of the Russian parliament is also the allocation of public budget funds to VEB.RF, Russian Small and Medium Business Corporation and Russian Export Center for their subscribed capital, which will enable the development institutions to provide financing for major national projects in a timely manner.
According to Nadezhda Maksimova, a deputy of the United Russia faction, the State Duma passed the amendments to the federal law on the development bank and to the Budget Code at the right time, which will make it possible to attract as much as 3 trillion roubles to implement national innovation and investment projects without using public budget funds.
“The fact that the development bank will be supported with three functions—first, the accumulation of these resources; second, the coordination of all development institutions, including Russian Export Center, RSMB Corporation and other institutions—will make it possible to finance national projects so as to prevent them being abandoned but to complete them and in order to efficiently use the resources intended for such projects,” Nadezhda Maksimova said at a plenary session of the State Duma.
Vnesheconombank issued short-term bonds in an additional placement to companies and corporations on 14, 15 and 16 November 2018.
The Bank raised 20.2 billion roubles, including 0.1 billion roubles from bonds with a maturity of 14 days and a coupon of 7.27% p.a., 20 billion roubles from bonds with a maturity of 15 days and a coupon of 7.27% p.a., and 0.1 billion roubles from bonds with a maturity of 28 days and a coupon of 7.27% p.a.
The par value of one bond is 1,000 roubles. The bonds were sold at 100% of their par value. The coupon is payable at maturity.
The arrangers of the bond issue are Gazprombank and Svyaz-Bank.
The bonds are on the Moscow Exchange’s Quotation List Level 1. The depository is National Settlement Depository.