Experience – LONG-TERM FINANCING FOR LARGE-SCALE PROJECTS

RPFB recommended itself as a leader in the industry of organization of financing for large investment projects.

For almost 30 years of operation more than $42 bln of debt and equity financing in total was raised with the involvement of RPFB.

International recognitions

Yuzhno-Russkoye field

Financial advisors – Societe Generale and RPFB

Europe Gas Deal of the Year 2011

European Upstream Oil and Gas Deal of the Year 2011

Energy Risk Deal of the Year 2011

Nord Stream

Financial advisors – RBS, Commerzbank, Sociate Generale and RPFB

Europe Gas Deal of the Year 2009

Best project finance deal in CEE 2009

Oil and Gas Deal of the Year 2010

Infrastructure Deal of the Year 2010

Blue Stream

Financial advisor of ОAO «Gazprom» – RPFB

Europe Oil and Gas Deal of the Year 2000

Yamal-Europe

Financial Advisor of ОАО «Gazprom» – RPFB

Eastern Europe deal of the Year 1997

Clients

Among our clients are major Russian companies such as:

Diverse foreign companies have been our clients:

Letters of recommendation

Financing sources

For raising financing for Russian projects RPFB interacts with such sources as international financial organizations, ECAs, leading international banks, investment and venture funds, international capital markets. The overview of main long-term financing sources is presented below:

Sources	Key Features	RPFB experience
Export credit agencies (ECA)	Justified by import of goods and services Long tenors (up to 16 years) In-depth Environmental & Social (E&S) due diligence Financing cost depends on OECD country risk classification (Russia is in Category IV) – it can be cheaper or more expensive compared to loans from commercial banks	Nord Stream CS Portovaya Blue Stream Yamal-Europe and others
International commercial banks	Faster and more flexible financing process Relatively short tenors Country and corporate limits Coverage of political risks (co-financing with official lenders)	Yuzhno-Russkoye field Nord Stream Sakhalin-2 and others
VEB.RF	Moderate equity requirements (20 : 80) Possibility of including historical expenses into equity, possibility of property contribution Segregation of project assets and revenues from requirements of parent company’s creditors No guarantees from parent company Long tenors (up to 20 years), grace period with interest capitalization (up to 3 years) PF factory: Subsidy on potential increase of Key rate Hedge of Borrower’s interest risk Minimization of financing costs Special calculation method of capital and reserves	Adler PP JSC Mechel – Elga coal mine
Russian banks	Ruble liquidity High appetite to Russian risks Participation in international syndicates	Yuzhno-Russkoye field Bystrinskiy GOK
International financial institutions: EBRD EBD Black Sea Trade and Development Bank Eurasian Development Bank (Shanghai)	Corporate Guarantees, co-financing Unanimous approval of all member countries required Special status for the project required Thorough E&S due diligence required Robust Economics Thorough EIA required	Gaztransit BuryatZoloto Kondopoga pulp & paper mill
Debt capital markets	Project bonds (public and/or private placement) Necessity to obtain rating The most suitable for refinancing (after completion)	Blue Stream, loan refinancing Project bonds Sakhalin-2 (cancelled) Nord Stream, refinancing of corporate loans via project bonds
Equity	Potential partners: industrial investors, construction companies, product purchasers, financial investors and others. Structuring of partnership / joint ventures	Nord Stream Yuzhno-Russkoye field Sakhalin-2

Case studies

Gaztransit (1999-2000)

Blue Stream – Project Finance (2000)

Sakhalin 2 (2008-2009)

Yuzhno-Russkoye – Project Finance (Phase 1) (2006-2011)

Nord Stream (2008-2011)

Bystrinskoye gold-iron-copper ores field (Bystrinskiy GOK) (2013-2016)

Yuzhno-Russkoye – Corporate Finance (Phase 2) – 2018

Publications

Project financing: fashion or necessity?

Financial modelling for projects on different implementation stages

Financial modeling: principles of development