Infrastructure bonds
are issued to finance
infrastructure facilities.
Specialized Project Finance Company (100% subsidiary of DOM.RF) issues bonds on the stock market with the guarantee of DOM.RF. The funds resulting from the placement will be used to finance infrastructure – either to developers in the form of infrastructure loans, or to the regions of the Russian Federation by redemption of their own bonds from the Specialized Project Finance Company.
300billion ₽
planned volume of the bond program (2021-2023)
Contribution to the future
300billion ₽
planned volume of the bond program (2021-2023)
Community
value
Construction of infrastructure is one of the main factors of economic growth. It directly affects the achievement of the national goals "Comfortable and safe environment for life" and "Decent, effective work and successful entrepreneurship."
Benefits
1
Growth of the economic potential of the regions of the
Russian Federation
2
Improving the living conditions of the population and the quality of
the urban environment
3
The possibility of implementing large-scale projects for the development
of new territories
4
Increasing long-term budget
revenues due to budgetary effects
5
Concessional financing of
infrastructure construction through subsidized
interest rates
1
The emergence of a sufficient margin of financial
stability to attract project
financing
2
Concessional financing for the construction
of infrastructure through subsidized
interest rates
3
Increasing the economic attractiveness of the project
4
The possibility of implementing large-scale projects
for the development of new territories
Financing scheme
Subsidizing coupon income
Infrastructure
bonds
bonds
Target loan
01
Market Investors
02
Specialized Project Finance Company
03
Regions of the Russian Federation
Subsidizing coupon income
Infrastructure
bonds
bonds
Target loan
01
Market Investors
02
Specialized Project Finance Company
03
Developer
Interaction process
1
Filing an application
A region of the Russian Federation submits an application
for provision of financing
2
Independent examination
of the project by DOM.RF
- Analysis of project implementation risks
- Analysis of the financial model of the project
- Analysis of the budget efficiency of the project, taking into account the socio-economic effect of its implementation
3
Selection decision
-
The Interdepartmental Commission under the Ministry of Construction,
Housing and Utilities of the Russian Federation makes decisions on projects providing infrastructure for specific land plots - The Government Commission for Regional Development makes decisions on projects for the construction of city-wide infrastructure
4
Providing
funding
Issue of bonds by the region of the Russian Federation and redemption of them by a Specialized Project Finance Company
1
Filing an application
The application is submitted with the request of the region of the Russian Federation
2
Independent examination
of the project by DOM.RF
- Analysis of project implementation risks
- Analysis of the financial model of the project
3
Selection decision
The Interdepartmental Commission under the Ministry of Construction,
Housing and Utilities of the Russian Federation makes decisions on projects providing infrastructure for specific land plots
4
Provision of a guarantee by
a region of the Russian Federation
5
Providing
funding
More about the project
Key requirementsMore details
- Rights to a land plot belong to a region of the Russian Federation
- Loan amount not less than 300 million rubles
- Loan term 3-15 years
- Implementation in accordance with Federal Law 44, Federal Law 224 and Federal Law 115
- Positive socio-economic impact
- Construction of transport, engineering and social infrastructure to provide land for housing
- Construction of citywide infrastructure
-
LLCR*
for project finance from a bank ≥ 1.2x
Total project LLCR ≥ 1.1x; (taking into account budgetary effects) -
The cumulative socio-economic impact> 0;
LLCR ≥ 1.0x (including budgetary effect); - Spatial planning and urban zoning documents
- Permitted use for housing constructi
- Spatial planning and urban zoning documents
LLCR (Loan Life Coverage Ratio) is a financial ratio used to assess a borrower's ability to repay a loan. Calculated as the ratio of the cash flow available for customer service to the loan limit and interest for the entire loan period
- Land rights for the developer
- Loan amount not less than 300 million rubles
- Loan term 3-15 years
- Construction of transport, engineering and social infrastructure to provide land for housing
-
LLCR*
for project finance from a bank ≥ 1.2x
Total LLCR (including infrastructure loan) ≥ 1.1x - Spatial planning documents that allow housing construction
- Guarantee of the region of the Russian Federation, on the territory of which the project is being implemented
- Availability of confirmed project financing for housing construction from the bank
LLCR (Loan Life Coverage Ratio) is a financial ratio used to assess a borrower's ability to repay a loan. Calculated as the ratio of the cash flow available for customer service to the loan limit and interest for the entire loan period
Key requirementsHide
- Rights to a land plot belong to a region of the Russian Federation
- Loan amount not less than 300 million rubles
- Loan term 3-15 years
- Implementation in accordance with Federal Law 44, Federal Law 224 and Federal Law 115
- Positive socio-economic impact
- Construction of transport, engineering and social infrastructure to provide land for housing
- Construction of citywide infrastructure
-
LLCR*
for project finance from a bank ≥ 1.2x
Total project LLCR ≥ 1.1x; (taking into account budgetary effects) -
The cumulative socio-economic impact> 0;
LLCR ≥ 1.0x (including budgetary effect); - Spatial planning and urban zoning documents
- Permitted use for housing constructi
- Spatial planning and urban zoning documents
*LLCR (Loan Life Coverage Ratio) is a financial ratio used to assess a borrower's ability to repay a loan. Calculated as the ratio of the cash flow available for customer service to the loan limit and interest for the entire loan period
- Land rights for the developer
- Loan amount not less than 300 million rubles
- Loan term 3-15 years
- Construction of transport, engineering and social infrastructure to provide land for housing
-
LLCR*
for project finance from a bank ≥ 1.2x
Total LLCR (including infrastructure loan) ≥ 1.1x - Spatial planning documents that allow housing construction
- Guarantee of the region of the Russian Federation, on the territory of which the project is being implemented
- Availability of confirmed project financing for housing construction from the bank
*LLCR (Loan Life Coverage Ratio) is a financial ratio used to assess a borrower's ability to repay a loan. Calculated as the ratio of the cash flow available for customer service to the loan limit and interest for the entire loan period
Key requirementsMore details
- Rights to a land plot belong to a region of the Russian Federation
- Loan amount not less than 300 million rubles
- Loan term 3-15 years
- Implementation in accordance with Federal Law 44, Federal Law 224 and Federal Law 115
- Positive socio-economic impact
- Construction of transport, engineering and social infrastructure to provide land for housing
- Construction of citywide infrastructure
-
LLCR*
for project finance from a bank ≥ 1.2x
Total project LLCR ≥ 1.1x; (taking into account budgetary effects) -
The cumulative socio-economic impact> 0
LLCR ≥ 1.0x (including budgetary effect); - Spatial planning and urban zoning documents
- Permitted use for housing constructi
- Spatial planning and urban zoning documents
*LLCR (Loan Life Coverage Ratio) is a financial ratio used to assess a borrower's ability to repay a loan. Calculated as the ratio of the cash flow available for customer service to the loan limit and interest for the entire loan period
- Land rights for the developer
- Loan amount not less than 300 million rubles
- Loan term 3-15 years
- Construction of transport, engineering and social infrastructure to provide land for housing
-
LLCR*
for project finance from a bank ≥ 1.2x
Total LLCR (including infrastructure loan) ≥ 1.1x - Spatial planning documents that allow housing construction
- Guarantee of the region of the Russian Federation, on the territory of which the project is being implemented
- Availability of confirmed project financing for housing construction from the bank
*LLCR (Loan Life Coverage Ratio) is a financial ratio used to assess a borrower's ability to repay a loan. Calculated as the ratio of the cash flow available for customer service to the loan limit and interest for the entire loan period
Key requirementsHide
- Rights to a land plot belong to a region of the Russian Federation
- Loan amount not less than 300 million rubles
- Loan term 3-15 years
- Implementation in accordance with Federal Law 44, Federal Law 224 and Federal Law 115
- Positive socio-economic impact
- Construction of transport, engineering and social infrastructure to provide land for housing
- Construction of citywide infrastructure
-
LLCR*
for project finance from a bank ≥ 1.2x
Total project LLCR ≥ 1.1x; (taking into account budgetary effects) -
The cumulative socio-economic impact > 0
LLCR ≥ 1.0x (including budgetary effect); - Spatial planning and urban zoning documents
- Permitted use for housing constructi
- Spatial planning and urban zoning documents
*LLCR (Loan Life Coverage Ratio) is a financial ratio used to assess a borrower's ability to repay a loan. Calculated as the ratio of the cash flow available for customer service to the loan limit and interest for the entire loan period
- Land rights for the developer
- Loan amount not less than 300 million rubles
- Loan term 3-15 years
- Construction of transport, engineering and social infrastructure to provide land for housing
-
LLCR*
for project finance from a bank ≥ 1.2x
Total LLCR (including infrastructure loan) ≥ 1.1x - Spatial planning documents that allow housing construction
- Guarantee of the region of the Russian Federation, on the territory of which the project is being implemented
- Availability of confirmed project financing for housing construction from the bank
*LLCR (Loan Life Coverage Ratio) is a financial ratio used to assess a borrower's ability to repay a loan. Calculated as the ratio of the cash flow available for customer service to the loan limit and interest for the entire loan period
Ask a Question
Ваша заявка на участие
в проекте отправлена
Answers on questions
Why are infrastructure bonds attractive to investors?
The high credit quality of infrastructure bonds will be ensured by:
by the guarantee of JSC DOM.RF for the bonds of Specialized Project Finance Company.
The possibility of providing JSC DOM.RF with loans (a reserve line) to finance Specialized Project Finance Company to fulfil its obligations to bondholders and acquire by JSC DOM.RF rights (claims) on loans provided by Specialized Project Finance Company and assessed as "default" for maintaining the high quality of the loan portfolio of Specialized Project Finance Company.
To attract project financing for projects, developers need minimum financial stability, and infrastructure costs reduce the financial stability of the project.
Will the infrastructure bonds mechanism change the situation?
Infrastructure bonds of JSC DOM.RF allow developers to finance the construction of infrastructure on preferential terms thanks to a subsidy from the federal budget to pay interest (coupon) on the bonds of Specialized Project Finance Company. Developers will be able to implement large-scale projects for the development of new territories. At the same time, the financial stability margin of the project from the bank's point of view will be sufficient to attract project financing.
Most of the regions of the Russian Federation experience a deficit in infrastructure financing. How will infrastructure bonds help build infrastructure?
Infrastructure bonds will become one of the important sources of attracting private investment in construction. At the same time, the mechanism will make it possible to reduce direct budgetary expenditures for infrastructure construction and achieve national targets for housing commissioning through the implementation of large-scale housing construction projects.
What is the minimum amount, and what is the minimum loan term?
The minimum loan amount is 300 million RUB. The loan term for a developer is 3-15 years, for a region of the Russian Federation — 3-30 years.
How is a project finance loan and an infrastructure loan related to each other?
Housing construction takes place at the expense of the developer's own funds and project financing. The funds received under the infrastructure loan are used for the construction of social, engineering and transport facilities. At the same time, the repayment of the infrastructure loan occurs after the repayment of the project financing loan from the bank. Thus, the infrastructure loan from the Specialized Project Finance Company ensures the preservation of the necessary margin of financial stability from banks providing project financing
What infrastructure facilities can be financed under this project?
Within the framework of the project, financing of the construction of infrastructure facilities can be carried out to implement a housing construction project (educational facilities, medical institutions, sports grounds, playgrounds, internal and external engineering networks, telecommunication networks, access roads to a prospective residential development site), as well as for the development of the agglomeration (city-wide housing and communal services, higher educational institutions, educational centres, clinics, hospitals, museums, cultural and educational centres, cinemas, libraries, city ground transport, subways, transport hubs, railway crossings, toll and free highways, city and flat parking).
What is the state guarantee of a region of the Russian Federation for?
The project includes several measures of state support. One of these measures is the provision of a state guarantee by a region of the Russian Federation for infrastructure loans provided to developers by Specialized Project Finance Company.
The provision of state guarantees of the regions of the Russian Federation will ensure:
balanced distribution of risks between a region of the Russian Federation), a private developer and JSC DOM.RF. In particular, the area of responsibility of the regions of the Russian Federation is the development of basic urban planning documents and (or) their timely updating;
reducing the time for approval of plans for planning and land surveying of the territory, developed by the developer, and connection to the networks;
growth in demand for space under construction through social programs (resettlement of dilapidated housing, improvement of housing conditions for certain categories of citizens, and so on).
Moreover, the financial stability of the project can be significantly influenced by the actions of the region of the Russian Federation to establish (change) the infrastructure load, as well as the participation of the region of the Russian Federation in the construction of such infrastructure.
What other measures of state support are provided?
The project provides for subsidizing the coupon on bonds issued by the Specialized Project Finance Company from the federal budget. Thanks to this, financing for the construction of infrastructure facilities will be provided by the Specialized Project Finance Company at a preferential rate.
This measure of state support is aimed at increasing the attractiveness of the securities placed by the Specialized Project Finance Company for investors. The subsidy will allow for full and timely payment of the coupon.
