The government expanded support for investors in projects in priority sectors of the economy

On behalf of the president, a decision was made to expand the capabilities of the Project Finance Factory program in order to reduce the burden on its participants, according to the website of the Russian government on May 22. The updated terms of the program were approved by a decree signed by Prime Minister Mikhail Mishustin.

The requirements for borrowers are being relaxed: the minimum share of investors’ own funds for projects that will be approved during 2024 is being reduced from 20 to 15%.VEB.RF” in financing such projects will be up to 25%, the rest must be borrowed from banks.

Also, investors will now have the opportunity to replace the loan financing of VEB.RF with the provision of guarantees from the state corporation. Thus, the participants of the program will become more free to choose a credit institution and credit conditions, the government notes.

In addition, entrepreneurs will be able to implement an investment project on the basis of existing companies – without the formation of additional legal entities (the decision will be valid on an ongoing basis).

Finally, within the framework of the program, at the expense of investments by VEB.RF and banks, equity funds will be created that will be able to provide the missing finance for investment projects – from 5 to 10% of their value.

“We expect that all these measures will increase the availability of project financing, increase the volume of lending to organizations that create promising industries,” Mikhail Mishustin said at a meeting with deputy prime ministers on May 22.

The Project Finance Factory was launched in 2018. The program involves the issuance of loans for the implementation of investment projects in priority sectors of the economy. Such loans can be obtained for projects worth from 3 billion rubles.

Several banks and the state corporation VEB.RF act as lenders at the same time. They provide the syndh borrower with a joint loan. VEB.RF acts as the operator of the program, coordinating its work, carrying out the selection and examination of projects. Now within the framework of the “Factory” 24 projects are being implemented for more than 1.6 trillion rubles. and nine more were approved in the amount of about 400 billion rubles.

The resolution was prepared to fulfill the instructions of the president following a meeting with members of the government in November 2022.