VEB.RF issued short-term bonds in additional placements to companies and corporations on 26, 27 and 28 June 2019.
The Bank raised c. 21.54 billion roubles, including 10.50 billion roubles from bonds with a maturity of 14 days and a coupon of 7.30% p.a., 0.04 billion roubles from bonds with a maturity of 21 days and a coupon of 7.29% p.a., and 11.00 billion roubles from bonds with a maturity of 28 days and a coupon of 7.28% 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 Supervisory Board Considers VEB’s Involvement in Three New Investment Projects Totalling About RUB50 Billion
Russian Prime Minister Dmitry Medvedev chaired a meeting of the VEB.RF Supervisory Board at the company’s new office in Vozdvizhenka Street. In his opening remarks he said: “I have signed an ordinance to establish the amounts of the state corporation’s paid-in and callable capital. It is a new mechanism for increasing the capital of development institutions. We have never had it before. It has been devised by VEB and is now fully usable. This is the part of the share capital that can be provided when investment resources are required. We expect to allocate up to 300 billion roubles for this purpose in the medium term.”
The Supervisory Board also considered VEB.RF’s involvement in three new investment projects designed by the reorganised team. The total project value approximates to RUB50 billion. VEB.RF’s expected commitment is RUB26.7 billion.
One of the projects aims to build a new-generation shuttle tanker of 69,000 deadweight tonnes with improved ice performance and manoeuvring characteristics. The Arc6 ice-class tanker is designed to navigate without an icebreaker escort through 1.3-metre-thick ice. It will be used for oil transportation in the Russian Arctic. Vnesheconombank is to invest 18.5 billion roubles in the project.
Two projects in the chemicals sector will be implemented via the Project Financing Factory. VEB is the operator of the Factory. Gazprombank acts as VEB’s financial partner in these two deals.
One of the two projects aims to build a production facility with an annual capacity of 140,000 tonnes of K-grade sulphuric acid and 360,000 tonnes of refined oleum at the KuibyshevAzot production site in Tolyatti. The total investments are estimated at RUB6.3 billion. VEB.RF’s commitment is RUB3.8 billion.
The other project is the Phase 3 construction of a production facility with an annual capacity of 500,000 tonnes of methanol in the Tula Region. The total project value is 22 billion roubles. The project initiator is Schekinoazot. VEB.RF is prepared to invest RUB4.5 billion.
Furthermore, the Supervisory Board reviewed the company’s new business model 2024 to ensure effective risk management and smooth operation in the near five years. In compliance with the business model, VEB does not compete with commercial banks and uses various instruments to participate in projects (guarantees, loans, and equity financing).
The Supervisory Board also addressed the issues of enhancing corporate governance.