AIZhK and NOMOS-BANK sign an agreement to finance a housing construction project

The Agreement has been concluded as part of the programme carried out by the Housing Mortgage Lending Agency (AIZhK) with the aim of stimulating lending to developers engaged in the economy class housing construction projects and to individuals wishing to buy apartments under such projects (the “Stimulus” programme).

The project comprises a residential apartment building located at: 15, Pervomaiskaya Street, Novosibirsk.

In accordance with the agreement, NOMOS-BANK undertakes to ensure scheduled completion of the housing under the project in compliance with the agreement concluded with the developer (credit line). The Bank will provide loans to individuals who will buy apartments in that building using the Bank’s own funds and loans obtained from the Housing Mortgage Agency (AIZhK).

Another participant in the project — OOO “Osnova” acts as sales guarantor. It provides a guarantee (offer) for the purchase of an agreed volume of unsold apartments under the project at fixed price and within a specific period of time following the completion of the construction.
The Agency provides the Bank with target loans for financing apartment buyers and the construction itself. NOMOS-BANK will determine on its own, in what amounts and for what purposes it will spend the funds obtained from the Agency.

In addition, the Housing Mortgage Lending Agency provides guarantees of re-financing of the mortgage loans that the Bank will issue to individuals, as well as secures mortgage loans for the purchase of the apartments provided to the sales guarantor, if necessary.

According to Andrey Shelkoviy, AIZhK executive director for project finance, the banks show high interest in participating in the “Stimulus” programme. The Agency has received 47 applications from banks for the total funding amount of 11.4 milliard Roubles. The Agency has concluded 12 agreements with nine banks on financing residential housing projects of over 211 thousand square meters for 4.3 milliard Roubles.

“The implementation of the programme will allow resuming economy-class housing construction projects and forming the economy-class housing segment”, — notes Andrey Shelkoviy.

“In our view, the ‘Stimulus’ programme is an up-to-date and efficient instrument aimed at restoring the real estate market, in particular, the economy-class housing segment, because it allows the bank to minimise the risks of default on loans”, — said Alexander Royko, Senior Vice President of NOMOS-BANK.