MainBank OperationsInvestment Operations of the Bank Lending / Project FinancingStandard (Net) Products		print

Standard (Net) Products

	Standard (Net) Products Non-standard products

To meet customer requirements in key areas RBD develops standard bank products which are realized both by the bank on its own and on a basis of a two-tier system – through regional counter-party banks.

Under sectorial positioning RBD has established main investment project finance objectives:

Priority Areas	Investment project finance objectives
SME lending support	SME infrastructure development (business-centers, business - incubators, technological parks).
Municipality development	Projects facilitating level and quality of municipal services which improve quality of life and social services.
Transport infrastructure	Transport infrastructure building in municipalities with population of 1 million people. Reconstruction and construction of new road junctions and infrastructure for their functioning.
Machine building	Establishing of up-to-date metal-working and machine-building plants. Production clustering.
Building materials industry	Development and upgrading of building materials production facilities.
Timber industry	Development and upgrading production facilities aimed at improvement of timber processing (MDF, OSB, wood particle board, wood fiber board, veneer and plywood).
Medical industry	Development of up-to-date competitive production facilities.
Fish-processing	Development fish-processing plants
Other innovation projects	Innovation projects funding

  
Basic principles of the projects’ selection

• Availability (or the final phase of receiving) of the complete list of documents determining:
  • Right to use the land plot; 
  • Specification of connection to utilities and infrastructure;
  • Positive conclusion of Glavgosexpertiza on the design and estimate documentation;
  • Building license;
  • Business-plan;
  • Marketing conclusion.

• Project’s investment stage (from the moment of financing till the first revenue) shall not exceed 3 years.
• Participating of initiator/borrower with its own resources in the project’s funding (minimal own resources participation share will be determined relying on analysis of the project’s risks, terms of implementation and its social value).

Basic investment projects’ structuring provisions

The projects shall be implemented both on principles financing and lending.

The bank builds-up a strict system of monitoring over the project at the investment stage (targeted use of resources). In some products the principle “one project – one company” is used.

The Bank structures the projects taking into consideration monitoring over other lenders. The Bank is a dominating lender in the project.

The Bank considers financing in the amount of RUR 100 million – 1.5 billion.

• Period of  loan –  is estimated on the basis of the Project business-plan;
• Interest rates – are designated by the Bank’s Credit Committee depending upon the period of loan and the extent of participation of the Initiator with its own resources and may increase/decrease in case risk exposure/reduction in the course of the Project’s implementation;
• Targeted use of funds – under the credit financing is accomplished pursuant to the designated purpose and approved plan coupled with obligatory interim documentary approval of the designated nature of the expenses;
• Principal redemption –  is paid regularly within the operating cycle of the project’s pay-off period (moratorium for the investment period);
• Interest redemption – is paid regularly within the whole period of the loan proceeds use (moratorium for the investment period is optional);
• Early redemption – is possible upon the parties’ agreement.

Basic security requirements

Mandatory security:

• Security for a land plot of the project (or pledge of tenant-rights);
• Security for up 10 100% of shares of the company-borrower.

The Bank assigns a surveyor (from a list of companies accredited by the Bank), and the Initiator must sign an agreement with the later for the Project monitoring during the financing period.

The Bank is entitled to require evaluation of the security every year during the financing period.

During the project’s preparation the Initiator delivers to the Bank the assessment of (the valuer is chosen by the Initiator on its own from a list of valuation companies accredited by the Bank):

• A land plot;
• The company’s block of shares;
• Fixed capital, assets and equipment.

The Bank is entitled to require additional security if the project’s financing terms (estimated on the basis of a business-plan) exceed 10 year and/or if in the course of the Project’s analysis other risks expose (technological, marketing and etc.) which significantly complicate the Project monitoring in the Bank.

Basic requirements to participation in the Project with the own funds

Initiator’s (Borrower’s) participation in the project with its own funds is stipulated in accordance with the terms of the Project financing* and depends on assessment of risks shown during the Project structuring.

The Bank includes in participation with the own funds the following expenses (paid and proved):

• Execution of land property rights;
• Land and real estate taxes paid at the investment phase of the Project;
• Preparation of construction documents and acknowledgment letters;
• Preparation of the business-plan and marketing opinion;
• Interest (fees) paid by the Bank at the investment phase;
• Other Project expenses which the Initiator may substantiate and prove to the Bank.

* -  is estimated based on the business-plan.

Corporate Business Department contacts:

Maxim G.Voronin Managing Director, Corporate Business Department Tel: +7 (495) 783-7998 ext.1010, e-mail: vmg@rosbr.ru

Oleg L.Syhachev Managing Director, Corporate Business Department Tel: +7 (495) 783-7934, e-mail: sol@rosbr.ru

Alexander A. Myagkov Managing Director, Corporate Business Department Tel: +7 (495) 783-7998 ext 1003, e-mail: myagkov@rosbr.ru

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