Mono-Cities Development Fund will allocate 1 billion rubles to Bashkir JSC POLIEF

UFA, 5 December 2018. /Bashinform News Agency, Galina Bakhshieva/ translated by Tatiana Aksyutina/. The Supervisory Board of the Mono-Cities Development Fund approved a decision on financing an investment project for Bashkiria to modernize the existing production facilities of terephthalic acid in Blagoveshchensk POLIEF JSC (part of the SIBUR Group of Companies).

According to the press service of the Ministry of Economic Development RB, the fund will provide the company with a loan of 1 billion rubles at 5% per annum for eight years. After the implementation of the investment project, it is planned to increase the output to 350 thousand tons per year.

It was also decided to amend the Provision on assistance in the preparation and participation of the Fund in financing of investment projects in single-industry cities.

The adopted changes significantly expand investors' access to the Fund support measures. In particular, it is planned to increase the term of loans from 8 to 15 years, increase the share of non-profit organization participation in financing projects from 40% to 80% of its total cost, as well as to reduce the minimum size of the Fund’s participation in financing an investment project from 100 million to 10 million rubles. The term of documents consideration at the request of project initiators is reduced from 65 to 35 working days.

A zero interest rate is established for investment projects for which the fund's loan amount does not exceed 250 million rubles, provided that the bank guarantee or the SME guarantee /SME Bank or VEB RF guarantee is submitted as a sole security.

In addition to the standard types of collateral, it is allowed to use the guarantee of the holding (parent) company having an international /Russian investment/credit rating that meets the requirements of the Fund as the only security for the loan for investment projects with the loan amount exceeding 250 million rubles.

The decisions taken are aimed at increasing the number of investment projects that the Fund will be able to finance, expanding regional coverage, as well as supporting small and medium-sized businesses in mono-cities.