VEB Project Financing Factory will be dealing with projects totaling 1 trillion Roubles in 2019
Posted on 18-01-2019 by GBC
Project financing in petrochemicals will be addressed at the CIS Petrochemicals conference, 11 Aril, during “The big money for big projects. Project financing strategies” panel discussion.
The VEB project financing factory this year will deal with seven projects totaling about 1 trillion roubles, the press service of the Presidential Administration reports.
“We have now capitalized Vnesheconombank, created the basis for a larger deployment of this institution, and this year seven large projects will be launched with a volume of about 1 trillion roubles. These are projects in petrochemistry, railway infrastructure, metallurgy,” said First Deputy Prime Minister and Finance Minister Anton Siluanov at a meeting with the President of the Russian Federation.
According to him, in 2018 only two projects were funded by the factory, but now the foundation has been created “for a more extensive deployment of this institution.”
Earlier it became known about Vnesheconombank’s involvement in two chemical projects. The first project is the construction of a K-grade sulfuric acid plant with a capacity of 140 thousand tons per year and oleum with a capacity of 360 thousand tons per year at the production site of KuybyshevAzot in Togliatti. The volume of investments will be up to 6.3 billion roubles. The financial participation of VEB.RF is 3.8 billion roubles.
The second project is the construction of a new methanol production facility with a capacity of 500 thousand tons in the Tula Region. The total cost of the project is estimated at 22 billion roubles. The initiator of the project is JSC Shchekinoazot. VEB.RF is ready to provide 4.5 billion roubles.
The project financing factory is a joint project of the Ministry of Economic Development and the VEB.RF state corporation, which provides for the financing of projects using syndication according to the 80 to 20 principle, where 20% are the project initiator’s own funds, 80% are borrowed funds syndicated through tranches for risks of project participants.