Rounds of construction: the state will support infrastructure bonds
The Russian Government will allocate more than 3.2 billion rubles for additional financing of the infrastructure bond program in the construction sector. The corresponding order was signed by Prime Minister Mikhail Mishustin. Details and experts' opinions are in the Izvestia article.
Support mechanism
Infrastructure bonds - a unique tool for Russia to finance socially important projects in the regions, told "Izvestia" in the External Communications Service "Dom.RF".
"This is a mechanism with market logic, but with elements of state support. The subsidy from the state provides a preferential rate on loans for the implementation of infrastructure projects, while the main costs fall on investors, who receive a return at the market level", - specified in the state corporation.
According to Dom.RF estimates, for every ruble from the federal budget there are 5 rubles allocated for infrastructure construction. This ratio confirms the effectiveness of the relevant bonds as a way of attracting market financing for long-term infrastructure projects.
In four years, Dom.RF has placed nine issues of infrastructure bonds and raised 120 billion rubles from the capital market.
"Now our portfolio includes 52 projects in 26 regions with a total loan amount of more than 180 billion rubles. The funds provided by the government will ensure their timely implementation on favorable terms. It is important to note that Dom.RF does not finance projects in a lump sum, but in stages - as needed and for specific works. Such a scheme provides additional guarantee of safety of investors' investments", - noted the financial institution.
The amount of funds allocated under the program for construction, at the end of 2024 may reach 100 billion rubles.
"The mechanism of infrastructure bonds is in great demand among regions and companies, as evidenced by the number and volume of applications under consideration. At present, Dom.RF is discussing with the business community and federal authorities the possibility of expanding the program, including within the framework of the Russian President's instruction to increase the amount of financing to 300 billion rubles," the state-owned company added.
Forced spending
The size of the subsidy is tied to the size of the key rate. In addition, some issues of infrastructure bonds have a floating coupon rate, also linked to the key rate, Timur Iskandarov, senior director and head of the project and structured finance ratings group at ACRA, told Izvestia.
- Since the key rate is now higher than the forecasted values, the government apparently needed a separate decision to increase the financing of its own obligations to Dom.RF SOPF under the subsidy, which in turn contributes to the staff servicing of the bonds," he noted.
The fact of allocation of funds is not unusual, the more so the volume of additional financing is small compared to the total volume of the program, the expert noted.
- Meanwhile, the program of issuing infrastructure bonds has several levels of protection not only from the government, but also from Dom.RF, including full surety, - he stressed.
A small step
Infrastructure bonds are very much in demand in the construction industry - they are the optimal instrument for financing infrastructure creation, says Nina Golubnichaya, Financial Director of the Airplane Group.
- But we, as a rule, do not use them now due to the highly regulated process of their receipt and operational work with them," the expert told Izvestia. - As for the discussed amounts, 3.2 billion rubles is a very small amount for the construction sector. Creation of the entire infrastructure within the framework of our projects only for social facilities in the Moscow region costs 10-12 billion rubles a year, but this type of financing in any case significantly reduces the burden in terms of financial costs for developers.
The 3.2 billion rubles allocated by the government for the infrastructure bond program is an important but intermediate step in the development of the project financing mechanism, said Denis Antipov, General Director of SEZ Dobrograd-1.
- "In the future, it is expected to expand the instruments of public-private partnership and introduce new mechanisms for attracting private investment in infrastructure projects," the expert told Izvestia. - It is especially important that the support is aimed not only at housing construction, but also at the development of social infrastructure. This creates a multiplier effect for the regional economy and improves the quality of life of the population.
Local solution
The program of infrastructure bonds in the field of construction is aimed at ensuring that large objects under construction are sufficiently paired with proper, developed and comfortable urban infrastructure, said senior lecturer of the Department of Territorial Development named after V.L. Glazychev. V.L. Glazychev Chair of the Presidential Academy Marianna Mayevskaya.
- This is a good tool of the state's urban planning policy," the expert told Izvestia. - Money always tends to run out faster than necessary, there is always a shortage of it. Nevertheless, the specialized program and the allocated funds should have a positive impact on the developers' ability to provide a full-fledged urban environment.
Additional financing of infrastructure bonds in the amount of 3.2 billion rubles is a small but strategically important step, says Alexander Shneiderman, Head of Sales and Client Support at Alfa-Forex.
- It will partially compensate for the interest income on the bonds, which is especially valuable in the context of a high key rate, which makes lending unprofitable for many industries. Such support stimulates the business environment, strengthening the position of bonds as an alternative source of raising funds," the expert told Izvestia.
Crisis in construction
Under the conditions of tough macroeconomic indicators, increased Central Bank interest rate and reduction of the limits of subsidized mortgages, the construction sector is going through a difficult time, Vladimir Komlev, a member of the Moscow branch of Business Russia, told Izvestia.
- Additional financing will have a favorable effect, but it is not a panacea in the specified amounts. The growing needs of business, taking into account the increasing complexity of logistics chains, the rising cost of construction materials, and at the same time the falling demand for housing due to high interest rates, suggest that there is no upper limit to the additional financing of the infrastructure bond program. Business today needs maximum support to avoid the growing number of long-constructions and empty sales offices," the expert believes.
According to him, the market has been talking for months about the expansion of preferential mortgage programs, changing the conditions and methods of distribution of funds. Such as attracting new players to the sector, not prescribed in the current 214-FZ. At the moment, the business is gradually facing a tangible shortage of cash flows. In order to avoid a series of bankruptcies, the professional community is looking for solutions.
"Izvestia sent an inquiry to the Ministry of Construction, but at the time of publication no response had been received.
