Vnesheconombank and the China Development Bank confirm their interest in organizing financing of Housing Mortgage Finance Agency programs
In the presence of Russian President Vladimir Putin and President of the CPR Xi Jinping, Vnesheconombank (VEB), the China Development Bank (CDB), The Agency for Housing Mortgage Lending (AHML) and VEB Asia Limited (VEB Group) signed a Memorandum of Understanding in the city of Beijing.
On behalf of VEB the Memorandum was signed by Chairman Vladimir Dmitriev, on behalf of CDB – by Mr. Zheng Zhijie, on behalf of AHML - by Director General Alexandr Semenyaka and on behalf of VEB Asia Limited – Managing Director Petr Selivanov.
Under the Memorandum VEB and CDB confirm their interest in organizing financing of AHML programs and are ready to cooperate with the Agency as financial consultants and potential creditors.
AHML is responsible for funding the construction of housing and infrastructure facilities under the Program “Housing for the Russian Family” approved by the Russian Government’s Resolution in May of 2014. Under the Resolution, 25 million square meters of affordable quality economy-class housing is to be built by July 2017. Such housing is to be sold at a price that is 20% lower than a market one but no more than 30 thousand rubles for a square meter. The Agency is also implementing the Program “Leased Housing” designed to form an affordable leased housing sector for general public. AHML’s financing needs amount to 135.5 billion rubles with a credit tenure of up to 25 years.
At present, AHML is exploring an opportunity for cooperating with Chinese construction companies and it is determined to study CDB’s business experience in funding affordable housing construction in China.
Press Office of Vnesheconombank
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru
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