On a recent visit of President Putin to the UK, HSBC Bank and Vnesheconombank have signed a €200mn framework agreement – the first of its kind in the UK.
HSBC will provide loans to Vnesheconombank to finance a number of contracts between European contractors and Russian corporates covering projects in the infrastructure, transportation and manufacturing industry sectors.
The loans will be guaranteed by a number of European export credit agencies including ECGD of the UK.
HSBC has a long-standing relationship with Vnesheconombank, which also acts as an agent for Russian government debt, and has arranged over US$1bn of export credit facilities to Vnesheconombank guaranteed by the Russian government.
This framework agreement, however, is for projects supported by Vnesheconombank without guarantees from the Russian government.
In addition to winning this mandate, HSBC has won a number of other mandates in Russia in the last year including a lead arranger role for US$450mn of export credit facilities for MTS.