VB.RF and Sberbank to Finance Novaport Holding’s Network of Regional Airports in Six Russian Regions
During the St. Petersburg International Economic Forum, VEB.RF and its partner bank signed a term sheet for financing a project to upgrade regional airports comprising Novaport Group in six Russian cities. Brand new terminals will be built in Murmansk, Astrakhan, Vladikavkaz, Tomsk, Kemerovo, and Ulan-Ude. The project financing will be structured in accordance with the principles of the Project Financing Factory in the form of a syndicate of Russian banks using special-purpose tranches and a subsidised interest rate. Sberbank will be a partner bank in the syndicate.
The document was signed on behalf of VEB.RF by its First Deputy Chairman and Member of the Board Nikolay Tsekhomskiy, on behalf of Sberbank by Deputy Chairman of Executive Board Anatoly Popov and on behalf of NOVAPORT HOLDING by Chairman of the Board of Directors Roman Trotsenko.
A 12-year syndicated loan for the amount of 6.6 billion roubles will be used for the construction of new airport terminals. In compliance with its terms and conditions, VEB.RF and Sberbank are to extend 2.65 billion roubles and 3.85 billion roubles in financing.
The construction is scheduled to be completed in 2023. The regional centres will obtain six modern airport terminals with almost 33,000 square metres of additional space for some 10 million extra passengers on a 12-year horizon. Furthermore, the year 2030 will see about 1,300 new jobs created with benefits exceeding costs by 4.4 billion roubles.
Novaport Holding’s Chairman of the Board of Directors Roman Trotsenko said:
“The project of integrated development of airport infrastructure will set the stage for new destinations and new air carriers, and, ultimately, deliver quality services to passengers and significantly increase passenger traffic. I am confident that investments in this project, in which we have injected 5.1 billion of our own funds will pave the way for even more ambitious joint projects in future. We estimate that investment in further development of our airports in the next five years will exceed 50-70 billion roubles.”
“The renovation of the regional airports’ infrastructure and expanding the network of interregional scheduled passenger air routes to 50% of the total domestic scheduled air routes are the objectives specified in the 2024 Integrated Plan for Upgrading and Expanding Trunk Infrastructure. As a development institution, VEB.RF views the tasks assigned by the May decree as its priority. Currently, VEB.RF Group is contemplating its participation in the financing of ten transport infrastructure investment projects totalling over 1.5 trillion roubles and included in the Integrated Plan, and more than ten projects totalling over 1 trillion roubles and considered for inclusion in the Integrated Plan,” Nikolay Tsekhomskiy noted.
VEB.RF, Russia Railways and Rostec Sign Road Map to Manufacture High-Technology Products for Railway Industry
At the St. Petersburg International Economic Forum, Russian Railways, Rostec State Corporation and VEB.RF signed a road map to phase out imports of digital products in the railway industry.
The road map was designed to implement the memorandum on cooperation in import substitution, innovative development and digital economy projects that was signed by the parties in February.
The road map provides for the high-technology products and solutions of Rostec’s Radiolectronics Cluster to be checked-out and tested using the facilities of railway transport companies. Successfully tested equipment can be then purchased by Russian Railways with potential backing from State Development Corporation “VTB.RF’.
“VEB.RF gives priority to major infrastructure projects, introduction of Russian leading-edge technology and digital solutions, and better transport accessibility. VEB.RF cooperates with Russian Railways and Rostec in several key business areas, which are now specified in the road map together with timelines and responsible officers. Importantly, each of our common tasks is ultimately designed to improve the quality of our people’s life,” VEB.RF’s Deputy Chairman Aleksey Ivanchenko said.
“The signing of this road map wraps up the preliminary stage of reviewing our companies’ requirements and capabilities, and we are moving on to collaborative work for the benefit of our customers,” Director for Information Technologies at Russian Railways Evgeniy Charkin said.
“Cooperation with Russian Railways and VEB.RF will enable Rostec to promptly implement advanced digital solutions in the railways infrastructure. It would also facilitate the achievement of goals set in the Digital Economy national project and contribute to import substitution. Rostec has already created efficient, reliable, cyber- secure and price-wise competitive products, which will be customized for Russian Railways’ needs,” Industrial Director of Rostec’s Radioelectronics Cluster Sergey Sakhnenko said.
The most promising areas of potential cooperation include Russian digital solutions ensuring tight information security for management information systems, IT and telecommunications equipment, robotics, and the industrial internet of things devices management.
At the Russian Investment Forum in Sochi in February 2019, Rostec State Corporation, Russian Railways and VEB.RF signed a memorandum on cooperation in import substitution, innovative development and digital economy projects. The partners have committed to facilitate the creation and localisation of high-technology non-defence products for the benefit of Russian Railways and using technological capacities of Rostec’s companies with potential backing from VEB.RF.
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.
One of the largest industrial companies in Russia, Rostec State Corporation comprises over 700 research and industrial companies in 60 regions of the country. Its key business areas include transport engineering, electronics, medical technology, chemistry, and innovative materials. Rostec’s holdings are divided into three clusters: radioelectronics, armaments, and aviation. Rostec’s portfolio includes such well-known brands as AVTOVAZ, KAMAZ, Kalashnikov, Russian Helicopters, URALVAGONZAVOD, and others. Rostec actively participates in all the twelve national projects. The major supplier of the Smart City technology, the company engages in the digitalisation of public administration, industry, and social sectors, and elaborates 5G development programmes, industrial internet of things, big data, and blockchains. Among its partners, Rostec counts leading global producers such as Boeing, Airbus, Daimler, Pirelli, Renault, etc. The corporation exports its goods to more than 100 countries. High-technology exports account for almost one third of the company’s revenues.
Russian Railways is one of the world’s largest railway companies with a vast freight and passenger volume. The company has high financial ratings, skilled professionals in all spheres of railway transportation, a broad science and technology base, project and construction facilities, and considerable experience in international cooperation.
The company operates one of the world’s largest transportation network with 85,500 km of maintained tracks and 43,700 km of electrified lines.
Russian Railways account for 45% and about 25% of Russia’s total freight (including pipeline transportation) and passenger traffic, respectively.