VIS Group has become the first in Russia to attract bond financing in the framework of a public-private partnership project

On October 4, VIS Development, LLC successfully placed BO-01 series bonds for a total of 1.7 billion rubles. The securities were issued for the purpose of refinancing the funds raised for the implementation of the public-private partnership project in the Yamal-Nenets Autonomous District. This is the first non-concession PPP project in Russia, within which a bond was raised by a private party.

The investment stage of the project is completed; all facilities have been built and put into operation. A total of 5 kindergartens and an elementary school in Salekhard, Novy Urengoy, Muravlenko, Tazovsky and Gorki village have been created. Public partner in the project is the Government of Yamal-Nenets Autonomous District, which will enter into ownership rights and fully pay for all facilities in the first half of 2019. All payments are included in budgets of appropriate levels.

Investors highly appreciated the degree of reliability of the project the placement of infrastructure bonds was completed in full with a rate of 11%. The organizer of the issue was "SMP Bank", JSC. The term of circulation of the bonded loan is provided for up to 1.5 years. The nominal of one bond is 1000 rubles.

The successful bonds placement issued within the framework of the PPP project is a positive precedent for this market. In the nearest future, the Group plans the second bonds issue worth 2.3 billion rubles, said VIS Group CEO Igor Snegurov.

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