VEB.RF issued short-term bonds in an additional placement to companies and corporations on 20 February 2019.
The Bank raised 15.8 billion roubles from bonds with a maturity of 14 days and a coupon of 7.63% 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.
State Development Corporation VEB.RF closed the order book for VEB.RF’s PBO-001R-15 exchange-traded bonds on 21 February 2019. Investors were offered bonds placed under the programme of exchange-traded bonds.
The Bank raised 5 billion roubles; the maturity of bonds is 2 years; the coupon rate is 8.73%.
The par value of one bond is 1,000 roubles. The bonds were sold at 100% of their par value.
The PBO-001R-15 bonds will be listed on the Moscow Exchange as from 28 February 2019.
Securities depository: National Settlement Depository.
Bookrunners: BC REGION, Russian Regional Development Bank, GazPromBank, VTB Capital, Rosselkhozbank.
VEB.RF Hosts Meeting of Project Working Group on Small and Medium-Sized Businesses and Individual Entrepreneurial Initiative Support
The first meeting of VEB.RF’s project working group, chaired by Deputy Chairperson Marina Romanova, involved in the national project for Small and Medium-Sized Businesses and Individual Entrepreneurial Initiative Support took place on 20 February 2019.
The meeting was attended by experts from VEB.RF, RSMB Corporation, SME Bank, REC, DOM.RF, the Far East and Baikal Region Development Fund, VEB-Leasing, the Russian Presidential Academy of National Economy and Public Administration, VEB Innovations, OPORA RUSSIA All-Russian Public Organisation of Small and Medium Business.
VEB.RF’s working group will contribute to strengthening the strategic partnership among development institutions, setting priorities, creating advanced solutions for SME support and suggesting new approaches to boosting entrepreneurship, including the urban economy projects.
The participants also discussed the need to make preferential lending and leasing products more accessible to entrepreneurs (including in the Far Eastern Federal District), the prospects for SME involvement in major investment and infrastructure projects, the better use of export opportunities and the challenges of gaining entry into foreign markets.
“Small and medium-sized businesses play an essential role in economic development. Encouraging entrepreneurial initiative can increase both employment and production efficiency. The coordinated activities of development institutions in this area will significantly accelerate the development process. In this context, VEB.RF’s large-scale projects can generate the demand for SME products and services,” Marina Romanova said.
The agreement was entered into during the Russian Investment Forum in Sochi. The document was signed on behalf of Gorod by its CEO Sergey Kalugin. The consortium was founded in February 2018. Its members are the Almazov National Medical Research Centre, ITMO University, the Faculty of Economics of Lomonosov Moscow State University, Rusatom Healthcare, Shvabe, and several other companies and research and educational centres.
The principal goal of the consortium is to use digital technology to enhance the efficiency of public health services in Russian regions. The Digital Healthcare Consortium also aims to develop and coordinate basic technological standards for digital health in Russia, test technologies and architectures and ensure that they come into use in the form of products, services and projects.
Project Financing Factory: Syndicated Loan Agreement Signed by VEB.RF, Gazprombank and Shchekinoazot
VEB.RF, Gazprombank and Shchekinoazot signed a syndicated loan agreement to implement a project to build a methanol production facility under the Project Financing Factory programme. The signing ceremony took place during the Russian Investment Forum in Sochi.
The document was signed on behalf of VEB.RF by its Deputy Chairman Yuriy Korsun, on behalf of Gazprombank by Deputy Chairman of its Management Board Alexey Belous and on behalf of Shchekinoazot by its Deputy Director General for Financial Resources Andrey Tokarev.
The project is the third phase of the comprehensive programme to increase methanol production with a capacity of 500,000 tonnes per year on Shchekinoazot’s production site in the Tula Region. When completed, the project will make the company the largest methanol producer and exporter in Russia. The project is carried out pursuant to the May presidential decree in relation to promoting non-resource non-energy exports.
The total project value is 22 billion roubles; the decision on VEB.RF’s commitment was approved by the Supervisory Board in December 2018. VEB.RF’s share in the syndicated loan will reach a total of 4.5 billion roubles. Gazprombank will lend 10 billion roubles. The intended length of the loan is 12 years. The syndicated loan will be used to pay for construction and installation and buy Russian-made equipment.
“This is one of the first syndicated loan agreements under the Project Financing Factory programme. The mechanism is aimed at providing additional benefits for both the project initiator and the participating bank. For example, this is a subsidy reducing the interest rate risk, along with risk sharing among all the project participants. Stimulating project financing is a priority for the development institution, while VEB.RF’s share in financing can be minimal. We provide all benefits for banks and the project initiator. For instance, VEB.RF’s share in the committed tranche will not exceed 10 per cent of the total project value under the Shchekinoazot project. The remaining financing will be provided by the partner bank and the project initiator,” Yuriy Korsun said.
“The project will have a positive effect on the development of the national chemical industry, creating the conditions for high-technology methanol production in the Tula Region. We are hopeful of continuing effective cooperation with our partners on promising projects that make it possible to use technological advances for economic development,” Alexey Belous said.
“When brought into operation, the M-500 will enable Shchekinoazot to make 1.5 million tonnes of methanol per year and become one of the largest methanol producers in Russia. Methanol is in demand in the global and domestic markets. The utilisation rate of Russian methanol producers is high now.
“The Project Financing Factory is an effective mechanism to support manufacturers. The memorandum of intent to use the Project Financing Factory for the M-500 project was signed by Shchekinoazot and VEB during the Russian Investment Forum 2018 in Sochi. This year, together with VEB and our key financial partner, Gazprombank, we hammer out the syndicated loan agreement. I would like to thank our partners for cooperation and understanding in all matters.”
The main idea behind the Factory is to provide projects with syndicated loans with government-subsidised interest rates and government-secured bonds. The legal framework took shape in the first half of 2018. VEB.RF is as the Factory’s operator. The Factory is attractive to project initiators because it offers a mechanism to hedge the interest rate risk. Commercial banks are mainly interested in sharing their project financing risks with VEB.RF. Major commercial and regional banks have already joined VEB.RF’s Project Financing Factory. A project is eligible for the Factory if it needs an investment of more than 3 billion roubles and has a payback period of up to 20 years. Furthermore, the project initiator must invest at least 20% of the project value.