VEB’s Supervisory Board approved financing a number of projects
Moscow, June 29. INTERFAX - The Supervisory Board of Vnesheconombank (VEB) at the session on Wednesday approved a number of large-scale projects, Vladimir Dmitriev, Chairman of the Bank, informed the journalists. In particular, according to his words, the financing required to complete the construction of the Boguchansk hydroelectric power station and the aluminium plant was approved. “After the approval by the Supervisory Board, VEB will start its financial support for these projects’ implementation – overall, about RUB 50 billion will be invested by VEB”, said V. Dmitriev.
He reminded that these projects are implemented adopting a PPP approach, with the state and the territorial administrations undertaking the construction of the infrastructure – both road and social.
“Concerning one of these projects, he added, should the “Russian Railroads” and the Krasnoyarsk territory be unable to finance the infrastructure, VEB would be prepared to resolve the issue”, said V. Dmitriev.
To quote Mr. Dmitriev, presently all the schemes securing project viability have been developed and well tested with the instruments designed to minimize VEB’s risks put in place.
“As far as the Boguchansk hydro-electric power station and the aluminium plant are concerned, these are the projects where the term of funds allocation actually exceeds 15 years”, said V. Dmitriev.
In this case, he pointed out, complicated transactions have to be appropriately structured since long-term funds either in rubles or in foreign currency are not presently available.
Besides, the issue of continuing the financing of Vladivostok airport was another topic on the Supervisory Board agenda.
“Today the decision has been made to extend additional RUB 900 million to finance this project” said V. Dmitriev.
Also, the parameters of further financing the “Rosa Khutor” company have been agreed. (the construction of a mountain skiing resort in Sochi is underway).
“We continue financing and bring project parameters in conformity with the terms and conditions approved by the Supervisory Board for projects implemented in the run up to the Olympic games, I actually mean the interest rates”, Mr. Dmitriev specified.
Another important project is financing the construction of the Adler heat and power plant.
“The volume of financing amounts to almost RUB 20 billion, the term - 15 years, the rate well within the range of ones applicable for Olympic facilities. The same is true for the ratio of project initiator funds/credit leverage of Vnesheconombank”, said V. Dmitriev.
To quote the Russian Government Chairman Putin, an export credit insurance agency will be established within VEB’s structure.
Moscow, June 29. INTERFAX – V. Putin, the RF prime minister, unveiled plans to establish Vnesheconombank’s subsidiary – an export credit insurance agency.
“A decision has been prepared to create a specialised export credit insurance agency, VEB’s subsidiary, called to become one of the key elements of the exports support system”, said V. Putin at the meeting of VEB Supervisory Board on Wednesday.
He emphasized, the focus will be primarily placed on moving Russian-made machinery and equipment and other high tech goods to foreign markets.
After the session of the Supervisory Board, V. Dmitriev, VEB’s CEO, told the journalists that VEB would extend RUB 30 billion for the agency for its start up operations.
“The Agency is being created as a 100% subsidiary of VEB, and the Bank allocates RUB 30 billion for the Agency to launch its operations. Admittedly, in 2010, no state guarantees will be needed for the implementation of the first projects of the Agency”, he said.
VEB is considering issuing RUB 190 billion 20-year bonds.
Moscow. June 29. INTERFAX-Financial Information Agency – Vnesheconombank (VEB) is considering issuing 10-year bonds amounting to RUB 190 billion - V. Dmitriev, VEB’s CEO reported at the briefing on Wednesday.
“This program was also approved (by VEB’s Supervisory Board – the notes of Financial Information Agency). These are 10-year bonds amounting to RUB 190 billion”, he said and pointed out that VEB does not intend to place the whole amount all at once.
VEB’s CEO stressed that the first bond issue within the frames of this program is scheduled to be placed in autumn 2010. “The placement could be made already in autumn”, he added.
VEB agreed with “Svyazinvest” proposal related to the sale of 9.8% of shares of “Rostelecom”.
Moscow. July. INTERFAX – Financial Information Agency – VEB agreed with “Svyazinvest” proposal related to the sale of its 9.8% stake in “Rostelecom” (RTC: RTKM),V. Dmitriev, VEB’s CEO, informed to journalists.
“We have agreed the major parameters of the option agreement with “Rostelecom”. We agreed with “Svyazinvest” that this package will be purchased on a break-even condition”, he said.
V. Dmitriev pointed out that within this transaction two options could be exercised in three and four years. He reiterated that “Svyazinvest” will buy “Rostelecom” shares with due regard for the price at which VEB bought them, that is RUB 230 per share.
Sberbank refinances RusAl’s loan raised from VEB amounting to USD 4.5 billion – said Dmitriev.
Moscow. July 28. INTERFAX – Financial Information Agency – Sberbank of the Russian Federation refinances the RusAl’s loan amounting to USD 4.5 billion raised from VEB – said V. Dmitriev, VEB’s CEO, at the briefing on Wednesday.
“Today the parameters of the transaction were agreed. Sberbank undertakes to secure the refinancing”, he said and pointed out that the risks will be equally apportioned between Sberbank and VEB.
V. Dmitriev added that VEB will act as a pledge holder and a guarantor under this loan.
“The pledge (major package of shares of “Nornikel” – notes by Financial Information Agency) is to be equally divided between Sberbank and VEB”, he said.
According to Mr.V. Dmitriev’s judgment, the block of shares of “Nornikel” will remain under state control till the agreement terminates.
As it was reported earlier, “RusAl” requested Sberbank of the Russian Federation to refinance a loan amounting to USD 4.5 billion. German Gref, Sberbank’s CEO, declared that the transaction on refinancing the loan to “RusAl” will be implemented by Sberbank jointly with VEB.
State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ placed an additional Eurobond issue for an amount of 600 million US dollars.
This issue was made as part of increasing a debut issue of ten-year eurobonds for an amount of 1 billion US dollars under the LPN Program subject to Rule 144a/RegS.
The issue yield rate was 6.6% per annum. The book was oversubscribed by more than 2 times.
The placement of additional eurobond issue at a lower interest rate with a significant oversubscription confirmed the correctness of the Bank’s strategy upon placing the first issue. One of the debut issue’s objectives was to create a positive image of Vnesheconombank as an issuer planning to make further borrowings on the international capital markets and establishing long-term strategic relations with investors.
Barclays Capital, Citi Bank, HSBC, Societe Generale, acted as arrangers of the bond issue, ING Bank, VTB Capital, Troika Dialogue acted as co-arrangers.
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