NOMOS-BANK’s project finance loan portfolio increases in H1 2008 by 42.2%

The volume of funds that NOMOS-BANK has provided to Russian enterprises as project finance rose by 42.2% in the first six months of 2008 reaching $814.77 million. Loans extended by the Bank to project initiators totalled $293.56 million. NOMOS-BANK extended $403 million in project finance loans in 2007.

“Rising demand for project finance services is due to both the overall development of Russia’s economy and the attractive finance terms offered by the Bank coupled with a flexible approach and expeditious processing of applications”, — stresses Sergey Bessonov, Director of NOMOS-BANK Department for Project and Structured Finance.

Sergey Bessonov has also pointed out that, as 2008 forecasts suggest, the key trend of the year, along with the dynamically increasing interest in this service, will be the gradual shift of demand from Moscow to the regions.

Project finance is still in high demand in such industries and sectors of Russia’s economy as construction materials industry, development, electric energy, food industry, extractive/mining industry etc.

Project finance is a form of finance, relatively new to Russia, under which the cash flows to be generated in the future (or their increase) from the investment object become the source for the return of the borrowed resources. Project finance is always provided for a specific investment project, the scale of which shall exceed the volumes of the enterprise’s current activity.