Russian Direct Investment Fund (RFPI), created with the participation of the Russian-Chinese Investment Fund (RKIF) and China Construction Bank Corporation (CCB) We figured out how to increase the inflow of Chinese money in Russia. There will be a partial credit guarantee mechanism of Chinese banks that reduce their risks, told “Vedomosti” CEO RFPI Kirill Dmitriev.
It is expected that an agreement will be signed on Friday during a meeting between President Vladimir Putin and Chinese President Xi Jinping, said the representative of the Russian Direct Investment Fund.
Possible contribution RFPI and partners – about $ 1.5 billion, said a person close to the fund. With the new mechanism can be drawn from Chinese banks about $ 20-25 billion over two to three years, expects Dmitriev. The mechanism provides no direct guarantees and co-financing deals: participation in the funding of the company receiving the Chinese loan. For example, mezzanine financing, Dmitriev explained.
At the mezzanine financing of the borrower issues two tranches of securities: the first – a more reliable, the second – less. Holders of the first tranche shall be reduced risks – in the event of default or non-payment of the coupon income the borrower pays to them first, and then with the holders of the second tranche. But for a lot of risks and higher returns – the rate on the second tranche of the above. Let’s say the company takes $ 1.5 billion, $ 300-400 million of this amount – “mezzanine financing from us,” cites the example Dmitriev. But the particular share is not fixed, each transaction will be considered individually, he stipulated.
RFPI for the second tranche takes big risks, to reduce the cost of Chinese financing rate for the tranche above RFPI, but in the end weighted average interest rate will be lower than when borrowing in the West, says an employee RFPI . Western investors are now asking for higher premium for Russian risks, including political, RFPI can afford not to include in the award rate, he explains.
The mechanism helps at times to increase lending to Russian companies and provide them with loans at affordable rates, said Dmitry. Potential borrowers – 50-70 among leading Russian companies, said Dmitriev, without naming specific selection criteria: the companies will be analyzed individually. It is not only the company, which typically invests RFPI (industry leaders with high growth potential) and leading Russian corporations, which have worsened conditions for attracting foreign funds, he says: they could attract money in the West, if not geopolitical difficulties.
A candidate for such funding could be “Sibur”, cites the example of a person close to the Russian Direct Investment Fund, but the deal has not, he stipulated. The Chinese are willing to lend to the project “Sibur” “Zapsibneftehim” $ 1 billion, said in March Dmitriev. Representative “Sibur” could not last night to respond to a request “Vedomosti”.
Hard Money
At the end of last year, “Gazprom” reported that in talks with the Chinese bank ICBC to issue bonds in RMB. Attract financing in the Asian market to the end of the year plans to “Gazprom Neft”, said in early April, deputy general director Vadim Yakovlev. Chinese banks have signed an agreement with “Novatek” to finance the project “Yamal LNG” by $ 13.5 billion, the company can choose the loan before the end of the year.
The goal – to provide cheap funding of business in the conditions of sanctions, recognizes Dmitriev. The idea of creating such a mechanism arose from the Fund before the imposition of sanctions, but now has acquired special urgency, he says. However, companies under sanctions will not be able to participate in this mechanism. Why were they excluded and whether it was a condition of Chinese Dmitriev declined to explain.
plans to attract Chinese money is at many companies (cm. Incision), but it is difficult to get them, complain of top corporate managers: the Chinese complex partners are eyeing for a long time and bargain for better conditions. The head of a large industrial holding company operating in including in China earlier this year complained that Chinese banks bet on Russia – 10% per annum in RMB (China’s inflation in 2014 amounted to 2%. – “Vedomosti”). In addition, Chinese banks do not want to spoil relations with the Americans, said the official financial and economic bloc: they are integrated into the global financial system and the fear of claims for transactions with Russia. Risk reduction and official documents of the Russian-Chinese Chinese banks to create a more comfortable environment, support the official plans RFPI.
No comments:
Post a Comment