Infrastructure Project Financing

Projects implemented:
  • project financing of the first-ever concession project in Russian contemporary history on construction and maintenance of tall road M-11 from Moscow to Saint-Petersburg (15 – 58 km road section);
  • project financing of new airport complex construction in Perm;
  • project financing of new airport complex construction in Anapa;
  • project financing of constructing, operation and maintenance of several general hospitals in Turkey on the base of public-private partnership;
  • project financing of constructing a new seaport “Bronka” in Saint-Petersburg.

Key requirements to deals on project financing* of infrastructure projects:

  • private investor invests his own equity capital which covers not less than 20 – 30% of project budget;
  • share pledge of the Special Purpose Vehicle (SPV);
  • pledge of receivables on key project agreements (general contractor agreements, owner-operator agreement, and so on);
  • guarantee on equity capital investment on the investment stage of the project (limited recourse as a guarantees of a financially reliable company, liquid assets pledging, bank guarantees, and so on).

For public-private partnership infrastructure projects (including concession agreements) there are some extra conditions for obtaining bank financing:

  • the loaner should be a private partner (concessionaire);
  • the loaner, the public partner (grantor) and the bank should sign direct agreement (liaison agreement) on reasonable conditions for the bank;
  • the public-private partnership agreement or concession agreement should contain provisions on compulsory payment by the public partner (grantor) compensation in the case of premature termination of the agreements indicated. Compensation of private partner (concessionaire) debt should be counted taking into account the amount of such a debt.

While taking part in infrastructure projects bank provides all the necessary support products. For example, tender participants willing to sign concession agreement are provided with bank guarantees.

*Banking products and services are provided by Sberbank.
 General license for banking operations issued on the 11th August, 2015. Registration No. 1481