Development Institutions Executive Team Headed by VEB.RF’s Chairman Igor Shuvalov Evaluates Ivanovo Region Investment Projects
On June 24, an executive team of development institutions visited the Ivanovo Region. Comprising top managers of VEB.RF, DOM.RF’s CEO Alexander Plutnik, Russian Export Centre’s CEO Alexander Slepnev, RSMB Corporation’s CEO Alexander Braverman, MONOGORODA.RF’s CEO Irina Makieva, the delegation was headed by VEB.RF’s Chairman Igor Shuvalov.
The executive team of development institutions visited the Great Ivanovo Manufacture and adjacent territories. Commenting the development institutions’ plans to transform the Great Ivanovo Manufacture, Igor Shuvalov said: “The building shall be carefully examined, and then VEB will attract an investor to create a new city centre with new jobs and recreational areas for the locals. It is a complex ambitious project, which will require concerted efforts of VEB, RSMB Corporation, DOM.RF and REC.”
“We plan to develop the territory of the Great Ivanovo Manufacture and other still-standing manufactures to create a single cluster. This may become a driver of urban development, which will attract the locals and tourists. VEB.RF jointly with DOM.RF and other development institutions will ensure comprehensive development of these facilities by creating a modern, comfortable urban environment, multi-purpose space for accommodation (including rental housing), work and leisure,” Alexander Plutnik said.
Igor Shuvalov and the Ivanovo Region’s Governor Stanislav Voskresensky discussed the implementation of modern and comfortable urban environment projects. Stanislav Voskresensky highlighted the importance of a comprehensive approach to the tasks: “All the VEB Group’s elements are important to us, as we are working for the benefit of quality of life, people’s well-being enhancement.”
The meeting with the members of the regional government and the local business community discussed several infrastructure and industrial projects’ investment prospects, the creation of export-oriented manufacturers, and development of road infrastructure. In particular two investment projects with financial participation of MONOGORODA.RF are planned in the region: cotton manufacturing in a single-industry town Navoloki and linen fibre manufacturing in Yuzha. “Both projects submitted their requests officially to the Fund. Together the projects will create more than 150 new jobs in single-industry towns of the region,” VEB.RF’s Deputy Chairperson and MONOGORODA.RF’s CEO Irina Makieva said. The amount of facilities granted by the Fund totals RUB165mn.
RSMB Corporation’s CEO Alexander Braverman participated in the presentation of the regional investment projects. RSMB Corporation selected four promising projects, which may benefit from loans and guarantees.
“The Ivanovo Region’s small and medium businesses are already backed by the members of the National Guarantee System and received loans and guarantees in the amount of RUB867.2mn. This support enabled businesses from Ivanovo to raise loan facilities for the implementation of projects in the amount of RUB3.2bn at a rate lower by 2 to 3 b.p. vs. the market,” Alexander Braverman noted.
Commenting the status of exports potential development, REC’s CEO Alexander Slepnev said: “The town of Ivanovo is well known for its consumer goods industry. There is a plan to boost exports in this area of business up to USD1.5bn in 2019. One of the contributors to this boost is the implementation of promising export-oriented projects. For example, we plan to support the manufacturing of new shoe leather articles with eventual exports to Italy, industrial grade fabric from Russian raw materials for tire and rubber plants, linen fabric intended for exports. I would like to highlight that we are already witnessing a growth in consumer goods’ exports. Q1 2019 shoes exports growth rate increased by 29%, the exports of finished textile by 12%, the exports of knitwear by 13%.”
Then the delegation took a trip to Palekh, where in 2018 a joint effort of DOM.RF, KB Strelka and the Government of the Region resulted in a transformation of Krestovozdvizhensky Public Garden in the village’s centre. An improvement programme for the Central Park is scheduled in 2019.
A framework agreement was signed during the visit. As per the agreement, VEB.RF and the Ivanovo Region will consider joint projects to tackle priority social and economic development tasks in the region.
VEB.RF and Ivanovo Region Agree to Develop Road Infrastructure and Public Transport
The executive team of development institutions headed by VEB.RF’s Chairman Igor Shuvalov visited the Ivanovo Region and signed an agreement on cooperation between VEB.RF and the Ivanovo Region. The agreement was signed by VEB.RF’s Deputy Chairman and VEB-Leasing’s CEO Artyom Dovlatov and the Ivanovo Region’s Governor Stanislav Voskresensky. The agreement provides for the search for and review of projects aiming to accomplish priority objectives of social and economic development of the Ivanovo Region.
The parties discussed the financing of road traffic safety programs in the Ivanovo Region, namely the construction of regional roads lighting systems as it is the most capital-intensive task. The parties also discussed the need to renew buses on regular routes. VEB.RF expressed its readiness to consider participation in public programs for development of the Ivanovo Region’s road infrastructure.
“Lease financing will make it possible to rapidly renew the Ivanovo Region’s transport infrastructure. All projects considered under the agreement are important to create a convenient environment for the region’s population,” VEB.RF’s Deputy Chairman and VEB-Leasing’s CEO Artyom Dovlatov said.
“This year we carried out an ad hoc study to identify road sections with the highest number of accidents. The length of these sections is 268.9 kilometres. We plan to install lighting posts, crash barriers and signs on these sections. But this program could have taken us five years to implement due to a significant cost. We made an arrangement with VEB.RF which will make the implementation of this program possible in one year instead of five. The quality of life and traffic safety are a priority for us. I hope that the implementation of the agreement will bear expected results: we will see less road accidents and lives will be saved,” the Ivanovo Region’s Governor Stanislav Voskresensky said.
VEB.RF issued short-term bonds in additional placements to companies and corporations on 19, 20 and 21 June 2019.
The Bank raised 24.83 billion roubles, including 20 billion roubles from bonds with a maturity of 14 days and a coupon of 7.49% p.a., 0.82 billion roubles from bonds with a maturity of 21 days and a coupon of 7.42% p.a., and 4.01 billion roubles from bonds with a maturity of 28 days and a coupon of 7.36% 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.
The State Development Corporation “VEB.RF” closed the order book for VEB.RF’s PBO-001R-17 exchange-traded bonds on 20 June 2019. Under the programme of exchange-traded bonds, investors were offered bonds with a total par value of at least 20 billion roubles and with a term to maturity of four years.
The order book was opened on 20 June 2019 with an initial coupon rate from 8.15 to 8.25% p.a. When the order book was closed, the coupon rate was at the bottom of the marketed level at 8.15% p.a. whereas the bond issue totalled 20 billion roubles.
The overall demand for the PBO-001R-17 exchange-traded bonds with a coupon rate of up to 8.15% reached around 39 billion roubles.
The PBO-001R-17 bonds will be listed on the Moscow Exchange as from 27 June 2019.
Securities depository: National Settlement Depository.
Bookrunners: BC REGION, ROSSELKHOZBANK, PROMSVYAZBANK, SOVCOMBANK, CREDIT BANK OF MOSCOW
Igor Shuvalov and Vasiliy Matyushevsky Discuss Bank BelVEB’s Development Prospects
On 20 June 2019, Minsk hosted a strategic session of the State Development Corporation “VEB.RF” and Bank BelVEB attended by the heads of both finance institutions, Igor Shuvalov and Vasiliy Matyushevsky.
The parties reviewed Bank BelVEB’s strategic objectives for 2019-2021 which include a deep transformation of the bank. Bank BelVEB’s top managers presented the main strategic focus areas: corporate investment business and integration projects, SMEs and retail, sales channels transformation, re-engineering of the bank. The parties reviewed main challenges for the bank and the ways to tackle them, and other issues. In particular the transformation of Bank BelVEB into an efficient financial technology group to breach the barriers of the banking business model was discussed. The parties discussed the creation of an ecosystem for clients and partners, a new service model.
Integration business development areas include financing of Russian exports to Belarus, financing of Russian and Belarus exports to third countries, financial support to new production projects with integration opportunities.
“We would like to see BelVEB as one of the best banks of the Republic of Belarus. The bank has its achievements and best practices; today the primary objective is to cooperate to support integration projects. We are carrying out a serious effort to develop BelVEB. It is our subsidiary bank and our underpinning partner in the Republic of Belarus in addressing the main challenge: opening up third countries’ markets for high technology products made in Russia and Belarus. The task number two is to make BelVEB standing on its own two feet in the Republic, competing for the leading role. The clients shall see the bank as a trustworthy organization. The bank shall be a partner of the Republic of Belarus’ Government in tackling social and economic tasks. The new strategy will make it possible to meet all these challenges,” VEB.RF’s Chairman Igor Shuvalov said.
Bank BelVEB’s Chairman of the Board Vasiliy Matyushevsky noted that the bank intends to create a comprehensive ecosystem for B2B and B2C customers. The ecosystem will be centred on the needs of customers. “We plan to implement the most cutting edge technology solutions, first of all in on-line and remote banking. I hope that these projects will be implemented,” Vasiliy Matyushevsky emphasised.
The parties also discussed a transformation of the bank’s retail network and points of sale, development of digital and partner sales channels, development of new innovation products. The bank plans to strengthen the implementation of open API technology.
Bank BelVEB will see significant changes it the way it interacts with SMEs: new digital services and products will be created, new projects with partners initiated.
After the meeting, the parties agreed to finalise the strategy in the near future and to adopt a document this autumn.