The Government Has Expanded the Capabilities of the Project Finance Factory Program

The Government continues to support investors in implementing major projects in priority sectors of the economy.

On behalf of the President, it was decided to expand the capabilities of the Project Finance Factory program in order to reduce the burden on its participants. The updated terms of the program were approved by a decree signed by Prime Minister Mikhail Mishustin.

Firstly, the decree softens the requirements for borrowers. In particular, the minimum share of investors' own funds for projects to be approved during 2024 is reduced from 20 to 15%. At the same time, the share of participation of VEB.RF in financing such projects will be up to 25%, the rest of the amount needs to be borrowed from banks. A similar decision was made last year and applied to projects approved in 2022-2023.

Secondly, investors will now have the opportunity to replace the loan financing of VEB.RF with the provision of guarantees from the state corporation. Thus, the program participants will become more free to choose a credit institution and credit conditions.

Thirdly, entrepreneurs will be able to implement an investment project on the basis of existing companies - without the formation of additional legal entities. The decision will operate on a permanent basis, and not as a temporary anti-crisis measure, as it was before.

In addition, within the framework of the program, at the expense of investments by VEB.RF and banks, equity funds will be created that will be able to provide missing finances for investment projects – from 5 to 10% of their value.

"We expect that all these measures will increase the availability of project financing, increase the volume of lending to organizations that create promising industries," Mikhail Mishustin said at a meeting with deputy prime ministers on May 22.