Vnesheconombank Finances High-Speed Motorway
OREANDA-NEWS. April 27, 2010. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, Sberbank of Russia and North-West Concession Company (LLC) in the presence of Russian Transport Minister Igor Levitin entered into a Credit Agreement worth 29.2 billion rubles on financing the project aimed at building a high-speed motorway Moscow-Saint-Petersburg in the segment of 15-58 km.
On behalf of Vnesheconombank the Agreement was signed by Vnesheconombank Chairman Vladimir Dmitriev, on behalf of Sberbank of Russia - by its Board Chairman German Gref and on behalf of North-West Concession Company (LLC) – by VINCI Concessions Chief Operating Officer Louis-Roch Burgard.
The Credit Agreement provides for Vnesheconombank and Sberbank of Russia to extend syndicated loans in equal proportions and for a period of 20 years to North-West Concession Company (LLC), the winner for the construction and operation of the motorway. Freshfields Bruckhaus Deringer acted as a legal advisor. French Corporation VINCI Concessions is the project’s principal participant.
Vnesheconombank also plans to take part in purchasing up to 70% of North-West Concession Company’s shares, the placement of which is part of the scheme for financing the project. The scheme was developed by Vnesheconombank and Sberbank of Russia.
As the arranger for financing the project, Vnesheconombank will continue its cooperation with the European Bank for Reconstruction and Development in order to get this international financial institution to participate in the project until this October.
Vnesheconombank’s participation in the project aimed at building a high-speed motorway Moscow-Saint-Petersburg serves as an example of the Bank for Development’s major role in financing large-scale national projects in Russia by way of its own participation and by way of raising commercial banks’ funds and foreign investments.
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