Infrastructure Capital and Project Finance
VTB Capital’s Infrastructure Capital and Project Financing Department (IC&PF) is the leader in the Russian market of infrastructure investments strongly focused on strategic and commercially attractive projects in Russia, especially Private-Public Partnerships (PPP). Activities of VTB Capital cover a wide range of infrastructure assets, among which key ones are:
Utilities and waste processing
Oil and Gas extraction
On the WHSD project, an investor consortium led by VTB Capital won the tender for the right to construct the central part of Western High-Speed Diameter in St. Petersburg and operate the entire stretch of this highway. In 2012, WHSD was the world’s largest road infrastructure project implemented within the framework of a PPP mechanism – the total of planned investments was estimated at RUR 206 billion. The construction of the central section of the road was successfully completed in December 2016 with the ceremony held in the presence of the President of the Russian Federation. VTB Capital acted as a co-investor, lender and a financial advisor on this project.
In 2014 a project company created by VTB Capital and its partner Vinci won the tender for the right to enter into a 27-year concession agreement for construction, financing and operation of sections 7 and 8 of the Moscow – St. Petersburg toll motorway M11. Project M11 uses a highly innovative financing structure including issuance of an infrastructure bond, first of its kind in Russia. The financial close was reached and a construction stage commenced in 2015. VTB Capital acts as a co-investor and a financial advisor in this project.
Pulkovo airport project has been a part of the IC&PF portfolio since 2010. The Pulkovo Airport is a winner of Airport Service Quality Awards 2015, it was ranked ‘Best airport in Europe” by Airports Council International (ACI). In 2017, Pulkovo was the 4th largest airport in Russia, having serviced 16.1 million passengers. In October 2016, Qatar Investment Authority (QIA) bought a 24.99% stake in the Pulkovo airport management company from the existing shareholders. In April 2017 VTB Capital announced a sale of a 25% stake in Pulkovo to an international consortium comprising Abu Dhabi sovereign wealth fund, Baring Vostok as well as the Russian Direct Investment Fund with its international partners which was successfully completed in August.
In 2017 the IC&PF had also participated in the tender for the right to conclude a concession agreement on financing, construction and operation on a toll basis of road infrastructure objects in Ufa worth Euro 650 million. VTB Capital had become the preferred bidder and signed the concession agreement with the Government of Republic of Bashkortostan in mid-2017. Currently the project is at the investment stage, construction works are underway.
VTB Group sees a great potential for the development of grain exports from Russia, and, in particular, for increasing grain transshipment capacities at deep-sea terminals. As a part of this strategy, in 2019 we completed the acquisition of 100% of Novorossiysk Grain Terminal, a grain and oilseeds transshipment facility at the port of Novorossiysk – one of the largest in the country.
In 2018 its transshipment volumes accounted for more than six millions of tons. The acquisition of Novorossiysk Grain Terminal is in line with the VTB Capital’s infrastructure business’ strategy, which includes investments in various large transport and logistics facilities.
- Oleg Pankratov
- Global Head of Infrastructure Capital and Project Finance
- Tel.: +44 203 334 85 87
- E-mail: Oleg.Pankratov@vtbcapital.com