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For initiators of investment projects

Project selection criteria

  • Footprint: Far East Federal District and Baikal Region;
  • The total worth of a project including the Fund’s investments should at least stand at 500 million rubles;
  • Investment objects: infrastructure and industrial facilities (without sectoral restrictions);
  • The planned return on the Fund's investments in the project at the time of making investment decisions must be 5% per annum;
  • Initiator: a financially stable company with a proven track record in the sector;
  • An investment project is prioritized for purposes of financing at the Fund’s expense in accordance with the Methods of Selecting Investment Projects planned for delivery in the territories of the Far East and Baikal Region (endorsed by Resolution #1055 of the Russian Government, dated 16 October 2014);
  • The net present value of the project is more than zero or equal to zero;
  • Maximization of the ratio of private investments in implementing an investment project and (or) related investment projects to the Fund’s investments;
  • Collectability assurance requirements: liquid collaterals, sureties and guarantees from the initiator and/or other solvent warrantors. The Fund does not buy out shares from the project initiators.

The process of making investment decisions


1
Assessing alternatives
To engage with the Fund, applicants need to fill out the investment request on the Fund’s site. The request is reviewed by the investment committee which, guided by the preset project criteria, decides on the expediency of further review of the project by the Fund. The term of the investment request review does not exceed one week.
2
Preliminary analysis
In the course of interaction with the project initiator the Fund clarifies various aspects of the project and elaborates upon the preliminary terms of financing. The main result of the preliminary analysis is the finalized draft agreement of intentions. The main terms of the Fund’s participation in the project are agreed with the Investments Committee at the Fund’s Board of Directors.
3
Integrated expert evaluation
In case the Investments Committee at the Fund’s Board of Directors agrees upon the main terms of the Fund’s participation in the project, an integrated expert evaluation of the project is carried out, including with the involvement of external experts (advisors, independent appraisers). Independent experts are attracted at the expense of the project initiators. The given expert evaluation usually lasts 1-2 months. Upon the completion of integrated expert evaluation (analysis and structuring of the deal) and finalization of the main provisions of the transaction documentation, the project is submitted to the Fund’s Board of Directors for review.
4
Prioritizing the project
The Subcommittee on Implementation of Investment Projects in the Far East and Baikal Region of the Government Commission on Matters of Socioeconomic Development of the Far East and Baikal Region (hereinafter: Subcommittee) reviews the project in accordance with Section IV of the Methods of Selecting Investment Projects planned for delivery in the territory of the Far East and Baikal Region, endorsed by Resolution #1055 of the Russian Government, dated 16 October 2014, for purposes of its prioritization and financing by the Fund from the funds allocated for Vnesheconombank from the federal budget.
5
Financial closing
In case of appositive decision made by the Fund’s Board of Directors and the Subcommittee, the Fund signs necessary documents in accordance with the finalized (suspensive) terms and starts financing the project.
6
Control
Control provides information on the course of the project delivery on a regular basis, along with a report on the spending of the Fund’s financial resources, information about the execution of the financial and behavioral terms, ensuring access to the company for audits. The Fund provides financing in keeping with the finalized schedule and meets other conditions in accordance with the signed documents.