Project Finance Factory program terms have been expanded by Russian government

The requirements for borrowers are softened by the Russian government decree. The share of investors' funds for projects approved in 2022-2023 is reduced from 20% to 15%. At the same time, the share of participation of VEB.RF in financing such projects will be up to 25%.

The amount of funds that VEB can allocate to borrowers on specialized applications is also increasing, from 294 billion to 500 billion rubles.

The updated terms of the program will allow new investment cycle launching based on existing companies - without the formation of additional legal entities.

“These measures will make it possible to increase the availability and attractiveness of project financing in our country, to increase the volume of lending to those organizations that create promising industries that are important for the development of the Russian economy,” Mikhail Mishustin said at a meeting with deputy prime ministers on November 14.

The “Project Finance Factory” was launched in 2018, becoming a new mechanism for attracting investments. The program involves the issuance of large preferential loans for the implementation of investment projects in priority sectors of the economy. Such loans can be obtained for projects worth 3 billion rubles. Several banks and the state corporation VEB.RF act at the same time as lenders. They provide the borrower with a syndicated loan.

Author: Azat Gizzatullin