Novikombank will start attracting and structuring syndicated loans for a project to create fifth-generation (5G) mobile communication equipment in Russia. This will allow attracting long-term loans and make flexible adjustments to the specific needs of the project. The corresponding agreement was signed during SPIEF-2021, indicating a total funding of 21.463 bln rubles.
According to the agreement, Novikombank will raise funds in a syndicated loan portfolio to create equipment and core networks, as well as start outlining serial production for an integrated 5G development roadmap. The agreement was signed by Special Project Officer of Rostec and Co-chairman of the Architectural Council for the Development of 5G in Russia Vasily Brovko and the Chairman of the Novikombank Management Board Elena Georgieva.
Rostec will direct the received funds to a comprehensive project for developing high-tech telecommunications products for 5G/IMT-2020 communication networks and lay down its serial production in Russia. To this end, Rostec is bringing together Russian companies that have the appropriate experience and competencies.
”The syndicated funding will allow us to provide stable extra-budgetary financing to the project. It will open up an opportunity to develop and acquire all necessary technologies, both from Russia and abroad, as well as execute all necessary transactions in time. It will also provide us with comfortable financial conditions for both construction and modernization of production facilities,” said the Special Project Officer of Rostec Vasily Brovko.
According to the project roadmap for 2024, total of 42.926 billion rubles will be required for developing the necessary production capacities for 5G/IMT-2020 communication networks, of which 21.463 billion rubles will be allocated to Rostec State Corporation from the federal budget in the form of a subsidy. Novikombank will act as the organizer of the off-budget financing.
“Novikombank will participate in this nationally important strategic project to create infrastructure for 5G mobile networks. The development of this technology should lead to a telecommunications breakthrough, an explosive growth of digital technologies and products. The bank acts as an organizer of financing, which means that all available mechanisms and instruments will be focused and integrated into the development project, taking its specifics into account. We have developed a unique project approach that allows to launch projects on a national scale in the shortest possible time frame,” commented the Chairman of the Novikombank Management Board, Curator of the Voronezh branch of Russian Engineering Union (SoyuzMash) Elena Georgieva.