OREANDA-NEWS. November 30, 2009. In the course of Russian Prime Minister Vladimir Putin’s visit to France, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, French Export Credit Insurance Agency COFACE, the European Bank for Reconstruction and Development, the European Investment Bank, North-West Concession Company (LLC) signed a Memorandum on Intent with regard to their participation in implementing a project aimed at building a high-speed motorway Moscow-Saint-Petersburg in the segment 15-58 km.

Under the Memorandum, Vnesheconombank is to extend a credit in the amount of up to 5.8 billion rubles to North-West Concession Company (LLC). If necessary, Vnesheconombank will consider the possibility of increasing its participation share in financing the project to 10 billion rubles.

The European Bank for Reconstruction and Development and the European Investment Bank are considering the possibility of financing the project in the amount of 400 million euros in ruble equivalent.

In order to extend credits in Russian rubles the European Bank for Reconstruction and Development is considering the possibility of issuing ruble-denominated bonds expected to be bought out through using pension savings funds managed by the trust management company (Vnesheconombank). And a coupon rate on bonds to be issued by the European Bank for Reconstruction and Development will be set at an inflation rate in the Russian Federation plus a margin agreed upon by the parties earlier.

As an export insurance agency, COFACE is considering the possibility of providing insurance coverage for ruble-denominated credits of foreign banks. In the absence of banks ready to extend credits in rubles, COFACE is ready to provide insurance coverage for euro-denominated credits.

A final decision on Vnesheconombank’s, EBDR’s and EIB’s participation in financing this project will be taken after each financial institution has evaluated the project with the help of expert organizations.

Vnesheconombank’s participation in financing the project was approved by the Bank’s Supervisory Board in June 2008.