STATE CORPORATION “BANK FOR DEVELOPMENT AND FOREIGN ECONOMIC AFFAIRS (VNESHECONOMBANK)”. Vnesheconombank’s role in the Development of the Transport Infrastructure and Private-Public Partnerships in Russia. London November 21, 2007. KEY MILESTONES IN VNESHECONOMBANK’S DEVELOPMENT.
“BANK FOR DEVELOPMENT AND FOREIGN ECONOMIC AFFAIRS (VNESHECONOMBANK)”
Vnesheconombank’s role in the Development of the Transport Infrastructure and Private-Public Partnerships in Russia
November 21, 2007
Rating upgrade by Fitch and S&P to BBB. Upgrade to Baa2 by Moody’s.
VEB successfully closes its debut US$500 Million
Federal Law “On Bank for Development” № 82-FZ was signed by the President of the Russian Federation.
Appointed as Agent of the Government of the Russian Federation.
Vneshtorgbank of the USSR
Vneshtorgbank of the USSR
Purchase of 94.6% of
Eximbank of Russia.
Appointed State Trust Management Company to handle pension savings funds.
Rating upgrade to BBB+
by Fitch and S&P.
VEB ensures an early
repayment of the debut US$500
Million Syndicated facility and enters into
a US$800 Million Syndicated facility.
• Status of a “State Corporation”
• Equity fully owned by the State
•Development functions as a key focus
•Full range of investment banking services
•Supervised by the Government of the Russian Federation
VNESHECONOMBANK’S POSITION IN THE RUSSIAN BANKING SYSTEM (PRIOR TO MAY 17, 2007)
* Foreign LT Bank Deposits
KEY ELEMENTS OF THE FEDERAL LAW “ON BANK FOR DEVELOPMENT” 17.05.2007 №82 - FZ
According to the Federal Law the new entity was founded on the basis of Vnesheconombank of the USSR – State Corporation “Bank for Development and Foreign Economic Activities (Vnesheconombank)”, followed by a merger with EXIMBANK of Russia and Russian Bank for Development.
Principles of activities
• Absence of competition with commercial financial institutions
• Environmental responsibility
• Priority is given to the PPP mechanism
• Project’s recoupment
Major areas of investment activities
• Removal of infrastructure restrictions impending economic growth
• Enhancing the efficiency of natural resources utilization
• Support of innovations
• Development of SME enterprises
• Support of industrial production export
Over 5 years
Total cost of project
Over 2 bln. RUR
Over 1 bln. RUR
• Expert evaluation of investment projects, advisory services
• Extension of loans and other forms of financing
• Issuing of guarantees and sureties, including exports guarantees
• Participation in charter capital of legal entities
• Export credits insurance
Range of services extended:
• Syndicated loans
• Structured finance
• Debt finance
• Project finance
• Equity participation
• Advisory services
Source: Ministry for economic development and trade
• Credit portfolio to be increased up to RUB 770 bln (USD 30.9 bln) from RUB 140 bln (USD 5.6 bln) in 2007;
• Borrowings from international and domestic capital markets
to be increased up to RUB 469 bln (USD 18.8 bln).
VNESHECONOMBANK – A NEW PRIVATE-PUBLIC PARTNERSHIP INSTRUMENT IN THE RUSSIAN FEDERATION
• State Investment Fund;
• Concession mechanism;
• State institutions for development;
• Creation of engineering implementation parks;
• Innovation venture funds.
• Possibility to implement socially important and relevant projects, unattractive for
traditional forms of private investments
• Increase of efficiency of the projects due to partnership with private business
•Decrease of Government risks due to reallocation of project risks to private
•Possibility to engage best management personnel, technology and engineering
• Decrease of the budget burden by means of private investments and partial reallocation
of total project costs and expenses of the project operator
Extensive experience in cooperation with international, development banks, financial institutions and ECAs
Expertise in large-scale investment projects analysis and project finance
(cooperation with federal and regional authorities)
Excellent business reputation and credit history
AGREEMENTS ON COOPERATION FOR ASSESSMENT AND FURTHER DEVELOPMENT OF LARGE-SCALE INDUSTRIAL AND INFRASTRUCTURE PROJECTS
CONSTRUCTION OF MOSCOW-ST. PETERBURG TOLL ROAD (15-58 KM)
CONSTRUCTIONOF A NEW CONNECTION TO THE MOSCOW RING ROAD OF THE M1 MOSCOW-MINSK FEDERAL HIGHWAY
Anatoly B. BalloMember of the Executive board –
Tel + 7 (495) 721 98 21
E-mail: Ballo@veb.ru9, Academic Sakharov Ave., Moscow,