Under the Program of Vnesheconombank’s Investments in Affordable Housing Construction and Mortgage Lending Projects in 2010-2012, the Supervisory Board approved the mechanism for refinancing mortgage credits through investing a funded portion of the labour pension and Vnesheconombank’s own funds in mortgage-backed bonds in order to encourage mortgage lending and make it more affordable to the general public. A decision was also taken to invest funds in the total amount of 250 billion rubles on the following terms:
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Vnesheconombank’s own funds to be invested in mortgage-backed bonds in the amount of up to 50 billion rubles at a coupon rate of 3% per annum under the bonds at prices no more than the par value;
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Pension savings funds managed by Vnesheconombank acting as the state trust management company to be invested in mortgage-backed bonds in the amount of 100 billion rubles at a coupon rate of no more than9% per annum under the bonds at prices no more than the par value;
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Pension savings funds managed by Vnesheconombank acting as the state trust management company to be invested in the Housing Mortgage lending Agency’s bonds guaranteed by the state in the amount of up to 60 billion rubles at a coupon rate to be set on the basis of market conditions;
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Funds of the National Wealth Fund to be committed to Vnesheconombank subject to Federal Law dated October 13, 2008, №173-FZ to finance the Housing Mortgage Lending Agency’s credit line in the amount of up to 40 billion rubles at an interest rate of 9.5% per annum for a period of up to June 1, 2020.
A decision was made to approve “Requirements to Bonds including Mortgage Backed Bonds and to Mortgage Coverage of Bonds to be Purchased under the Program of Vnesheconombank’s Investments in Affordable Housing Construction and Mortgage Lending Projects in 2010-2012”.
A decision was made to approve “The Procedure for Cooperation between State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the Housing Mortgage Lending Agency, Vnesheconombank’s Investment Company (VEB Capital) and Credit Institutions and Mortgage Agencies in Implementing the Program of Vnesheconombank’s Investments in Affordable Housing Construction and Mortgage lending Projects in 2010-2012”.
The Supervisory Board approved extending guarantees as a security of VEB Capital’s liabilities under Agreements on Providing Services on Arranging Bond Issues to be concluded under the Program in favor of mortgage- backed bonds issuers for a total amount of 150 billion rubles with a validity period of no more than three years. Terms of issuing Vnesheconombank’s guarantees, changes in the terms and other terms of the Bank’s participation in this project are to be approved by Vnesheconombank’s Management Board.
VEB Capital together with the Housing Mortgage Lending Agency were assigned to prepare a format for reporting on the progress of extending housing and mortgage credits under this Program to be submitted for consideration by the Supervisory Board.
Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru
On Signing an Agreement between Vnesheconombank, Degremont SA and LLC Eurasian-Ecoprojects
In the course of Russian President Dmitry Medvedev’s state visit to France, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, French Company Degremont SA and LLC Eurasian-Ecoprojects (a subsidiary of OJSC Eurasian) signed a Memorandum on Cooperation.
For the Russian side, the Memorandum was signed by Vnesheconombank Chairman Vladimir Dmitriev, OJSC Eurasian General Director Sergei Yashechkin, for the French side – by Degremont SA General Director Remi Lantier.
Under the Memorandum the parties intend to cooperate in implementing the project aimed at constructing a sludge incineration plant on the territory of the sewage treatment facilities in Adler’s district.
This project provides for constructing a sludge incineration plant on the territory of the sewage treatment facilities in Adler’s district with a capacity needed for servicing the existing sewage treatment facilities in the city of Sochi.
The project would make it possible to connect new consumers on the territory of Sochi to the centralized water disposal system and improve sewage water treatment quality through utilizing sludge that forms in the process of sewage treatment by way of incinerating it.
The Memorandum was signed to build on the Agreement signed in 2006 on Cooperation between Vnesheconombank and OJSC Eurasian designed to monitor and raise funds to finance projects to reconstruct and upgrade water supply and water disposal infrastructure which are implemented by OJSC Eurasian in various regions of the Russian Federation on the principles of public-private partnership.
State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ was established under the Russian Federal Law “On the Bank for Development” by way of reorganizing Vnesheconombank of the USSR. The Bank for Development’s activity is aimed at promoting the development of high-technology industries, infrastructure, innovations as well as at supporting high-tech exports and providing support for small and medium-sized enterprises
OJSC Euirasian is one of the leading Russian companies operating in the infrastructure sector. The company’s charter capital is 4 billion rubles. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ is one of OJSC Eurasian’s key shareholders. The Company is responsible for implementing long-term investment projects in the water supply and water disposal sector in the city of Rostov on the Don, Sochi and a number of cities in the Krasnodar Territory. 8.5 thousand workers are employed by OJSC Eurasian’s enterprises. The Company’s aggregate investment portfolio in infrastructure projects for the coming 15 years is more than 40 billion rubles.
Degremont SA is part of the Suez Environment Group. It has been specializing in drinking water treatment and sewage treatment. The Company’s more than 4500 employees are working in more than 70 world countries. In 2008, Degremont SA had an annual turnover of more than 1014 million euros and implemented projects aimed at constructing the world’s largest sewage sludge incineration plants
Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru