The Factory is a project finance mechanism for investment projects in Russia’s priority industries. The mechanism allows borrowers to obtain funding under syndicated loan (credit) agreements and raise more funds to deliver state-backed projects.

Tools to promote projects delivered through the Factory

  • Vnesheconombank’s administrative and financial support
  • Borrowers and lenders’ interest risk hedging using the Russian government subsidies
  • The Russian government targeted guarantee to reduce financing costs and mitigate risks of investors in bonds issued to finance the Factory projects
  • Special procedure for calculating Russian credit institutions’ capital adequacy ratio and creating provisions for loans and credits granted through the Factory

Factory Organization Model

Vnesheconombank
  • Factory operator
  • Selects Factory’s projects
  • Syndicate loan manager
  • Recipient of the government subsidy
Economy Ministry
  • Factory supervisor
  • Chief manager of the government subsidy
PFF SPV
  • Wholly owned by VEB
  • Issuer of government-backed bonds
  • Tranche A Lender
  • VEB commitment to buy out/substitute SPV’s distressed assets
Ministry for Finance
  • Issuer of a government guarantee and grantor of the subsidy
Factory Participants
  • Lenders: Commercial banks and global financial institutions
  • Project initiators
  • Direct Investment Funds
Central Bank
  • A special procedure to govern commercial banks relating to Factory project lending


Project Selection Criteria

Above RUB 3 bn
Project in the Russian Federation
Up to 20 years payback period
Areas and industries pursuant to VEB Strategy
≥20% sponsor’s equity investment
Borrower - project company

Электронный офис клиента в разработке

Закрыть
Ask a question
The following required fields are missing: Name
The following required fields are missing: Telephone
The following required fields are missing: Question
The following required fields are missing: Ваш Email
Your message has been sent.
Leave feedback
The following required fields are missing: Name
The following required fields are missing: Company
The following required fields are missing: E-mail
The following required fields are missing: Message
The following required fields are missing: Ваш Email
Your message has been sent.
Report corruption
The following required fields are missing: Name
The following required fields are missing: E-mail
The following required fields are missing: Telephone
The following required fields are missing: Question
Your message has been sent.
This website uses cookies to optimise user experience. Cookies are used only to recognise previous visitors. You may refuse to receive cookies by activating the settings on your browser.