VEB.RF issued short-term bonds in additional placements to companies and corporations on 13 and 14 June 2019.
The Bank raised 6.08 billion roubles, including 5 billion roubles from bonds with a maturity of 21 days and a coupon of 7.57% p.a. and 1.08 billion roubles from bonds with a maturity of 28 days and a coupon of 7.54% 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.
VEB.RF’s Deputy Chairman Alexey Miroshnichenko: ‘Development Banks to Assist in SCO Economic Breakthrough’
VEB.RF’s Deputy Chairman – Member of the Management Board Alexey Miroshnichenko spoke at a meeting of the Shanghai Cooperation Organisation Interbanking Association Council. The meeting took place in Cholpon-Ata on the shore of Lake Issyk-Kul in Kyrgyzstan. The meeting brought together representatives of the leading finance organisations, members of the SCO IBA: the China Development Bank, the Development Bank of Kazakhstan, the RSK Bank of Kyrgyzstan, the Amonatbonk State Savings Bank of Tajikistan, the National Bank for Foreign Economic Activity of the Republic of Uzbekistan, Habib Bank Limited (Pakistan).
In his speech, Alexey Miroshnichenko highlighted the role of the development institutions in enhancement of SCO cooperation. The IMF’s forecast envisages that the SCO economies will account for 40% of the gross world product (GWP) in the next five years. “The development banks around this table have the best positions to bring about this breakthrough in terms of financing and expertise,” VEB.RF’s Deputy Chairman said.
The head of VEB.RF’s delegation highlighted the goal of using national currencies for settlements and loan facilities. “The volume of mutual trade between the SOC states is tangible which means that there is a significant potential for settlements in national currencies. It will result in a decrease of financial and operational risks as the entire settlements infrastructure is located within the member states. Not only trade, but also loan facilities could be and should be translated into national currencies,” Alexey Miroshnichenko said highlighting VEB.RF’s experience in raising RMB-denominated loans.
In his speech, VEB.RF's representative also noted the importance of infrastructure construction. “The joint development of international transport corridors by the SCO member states will make it possible to establish new cooperation ties and contribute to economic integration. In this regard, it is important to raise investments in the development of infrastructure. VEB.RF has extensive experience of implementation of large-scale infrastructure projects such as motorways, terminals, airports,” he said.
Alexey Miroshnichenko informed the meeting on VEB.RF’s participation in the Project Financing Factory program and the development institutions’ urban economy effort. He called upon the members to intensify urban economy development cooperation within the SCO IBA, as it will result in scaling of the best models and solutions. “We are ready to share our approaches to development of main urban services: transport, ‘smart city’, social infrastructure, and public utilities,” he noted.
The SCO IBA meeting approved a new member. India Infrastructure Finance Company joined the IBA.
The State Development Corporation VEB.RF will assume the presidency of the Shanghai Cooperation Organisation Interbanking Association this October.
Moscow Innovative Companies to Get Access to VEB.RF’s Electronic Platform and Receive Support from Development Institutions
During the St. Petersburg International Economic Forum, VEB.RF and Moscow Department for Entrepreneurship and Innovative Development signed an agreement on cooperation in innovative development and support for high-technology projects.
The agreement was signed by VEB.RF’s Deputy Chairman Alexey Ivanchenko and Head of Moscow Department for Entrepreneurship and Innovative Development Alexey Fursin.
Moscow has built a large-scale innovative infrastructure supported by Moscow Government through both financial and non-financial instruments. The city is interested in searching and adopting solutions aimed to enhance urban environment and improve the quality of life. For several years, Moscow Venture Investment Development Fund has been carrying out the programme to support innovative projects and venture investors at early stages. Since 2012, the Fund has invested 475 million roubles. Moscow has created an ecosystem of 35 technology parks with tax incentives that provide more that 50,000 jobs. By presidential decree, Moscow is building an innovative cluster based on a unique IT-platform.
“One of VEB.RF’s first priorities as a development institution is to develop urban environment and improve the quality of life. Our joint efforts are targeted at fundraising for Moscow high technology companies, building an innovative infrastructure, and providing access for innovative companies to the electronic platform created by development institutions. Entrepreneurs are getting access to an integrated platform aggregating support measures, and to high-quality expertise at various stages, from idea generation and startup registration to product exports,” Alexey Ivanchenko emphasised.
“The agreement specifies an easy access for Moscow innovative companies to one more finance source. Projects carried out under VEB.RF’s programmes and located in Moscow will be fully supported by Moscow Government. Moscow is particularly interested in new urban solutions and is ready to provide platforms for pilot projects to non-Moscow companies which are included in the pool of innovative companies supported by VEB.RF,” Head of Moscow Department for Entrepreneurship and Innovative Development Alexey Fursin said.
VEB.RF, together with the relevant development institutions, and Mail.Ru Group have agreed to create an electronic platform to enable businesses to have fast and easy access to project support tools across various areas.
The platform will consist of business project support products for development institutions, namely VEB.RF, DOM.RF, RSMB Corporation and Russian Export Center.
VEB.RF is a state development corporation. In partnership with commercial banks and investors, VEB.RF is involved in national projects designed to support high value-added manufacturing, non-resource exports, urban agglomeration and infrastructure development. VEB.RF coordinates activities of the largest national development institutions: Russian Export Center, DOM.RF, RSMB Corporation, the Far East and Baikal Region Development Fund, MONOGORODA.RF.
VEB.RF Announces Strategic Partner to Construct New Paper Mill in Krasnoyarsk Territory
VEB.RF and Rockwell Capital investment company have signed a memorandum of intent to create a holding as part of a common strategy in the Russian timber processing complex. The parties’ first project stipulates the construction of a new paper mill in Krasnoyarsk Territory.
Conditions precedent to the project were concluded during the St. Petersburg International Economic Forum in the presence of VEB.RF’s Chairman Igor Shuvalov. The documents were signed by VEB.RF’s First Deputy Chairman and Member of the Management Board Nikolay Tsekhomsky and Rockwell Capital’s owner Gleb Frank.
The new pulp mill will be built at the production site of Kraslesinvest, a member of VEB Group. A total of about 140 billion roubles will be invested in the project. The production will be based on state-of-the-art technologies in compliance with environmental safety requirements. The mill's total capacity will be 900,000 tonnes of pulp per year.
“VEB.RF is ready to be a major financial investor. Front-end planning proved the project’s viability and, most importantly, the absence of feedstock and environmental risks. It is expected that the construction will start in the spring of 2020, with first pulp products entering the market as early as 2025. The new pulp mill will export its products to East and South-East Asia,’ Nikolay Tsekhomsky said.
Rockwell Capital intends to be a managing partner to consolidate the current assets and create new high-technology businesses and, respectively, an asset manager.
“Despite a well-developed timber processing industry, Russia has not built any new pulp mills over the last forty years due to high construction costs and long construction periods. As a result, the contribution of the timber industry to Russia’s economy is insignificant as compared to competitor countries. Our strategic goal is to build a new pulp mill employing advanced technologies for timber processing and chemistry and to introduce responsible timber exploitation practices,” Rockwell Capital’s owner Gleb Frank commented.
The parties will also cooperate in a number of projects to build new production facilities aimed at developing timber harvesting and processing assets in Siberian and Far-Eastern Federal Districts in order to create a national timber centre and timber processing enterprises. VEB.RF is ready to be a major financial investor that will attract repayable debt finance backed by government support. VEB.RF also intends to arrange project and export finance, including the involvement of foreign export agencies and application of Project Financing Factory mechanisms.
During the St. Petersburg International Economic Forum, state-owned company Russian Highways, InfraVEB, and the Primorie Territory administration entered into a tripartite agreement on cooperation in the structuring and implementation of the Vladivostok Ring Road investment project.
The document was signed by Russian Highways’ Chairman of the Board Vyacheslav Petushenko, InfraVEB’s CEO Yuriy Korsun, and Governor of Primorie Territory Oleg Kozhemyako.
The parties agreed to cooperate in the structuring and implementation of the project to construct a motorway in Vladivostok, as well as in delivering other road infrastructure projects.
“State-owned company Russian Highways is ready to assist in delivering infrastructure projects and introducing innovative technology. I hope that our joint project will allow motorists to make it from one Vladivostok’s district to another much faster than now. It will also improve the environment and transport accessibility across the agglomeration,” Russian Highways’ Chairman of the Board Vyacheslav Petushenko said.
“Transport infrastructure development is on VEB.RF’s priority list. The project in Vladivostok will be implemented drawing on state-of-the-art innovative technology. It is expected to structure the project on the public-private partnership principles. InfraVEB is ready to help raise private capital to finance the project,” Yuriy Korsun said.
“This year, we are going to invite bids for price substantiation, make preliminary calculations as to the application of funds for the construction of this road, and explore PPP options. It is exactly this agreement that enables both VEB.RF, Russian Highways and other companies to size up all these options and then come up with their financing proposals. In 2019 - first half of 2020, it is scheduled to provide price substantiation and then to proceed to the engineering and construction proper,” Governor of Primorie Territory Oleg Kozhemyako said.