Financing of projects of social significance
Sberbank finances major projects of social significance for individual regions and the country as a whole, thereby implementing the priority lines of its business in order to facilitate economic growth and support local communities. The Bank contributes to the development of society through the creation of new workplaces, an increase in tax revenues to the budget, the creation of infrastructure assets, the development of domestic production and reduction in consumer prices for products, and as a result an increase in living standards.
Projects of social significance are aimed at the construction of transport, power, production, and social infrastructure assets in the regions where Sberbank has a presence.
Investment projects in the housing and utilities sector for up to RUB 5-10 billion is significant from a social standpoint for the regions. This area is also relevant as costs on the correct preparation and support of projects, taking account of the requirements of financial institutions, could reach amounts commensurate to the investment budget of the project, rendering the financing of such projects unattractive. In addition, the regions lack the required competencies to support projects at the appropriate level. Only big concessionaires can afford to work once all the financing requirements of banks have been considered.
Accordingly, in order to simplify the procedures for preparing and supporting investment projects, Sberbank has developed jointly with the Ministry of Construction and Housing Utilities of the Russian Federation “out-of-the-box” investment solutions that include document templates for the preparation, support and financing of concession projects in the housing and utilities sector. Rights under a concession agreement are used exclusively as security, which is effectively a guarantee of revenue.