Sustainable Development: Strategic Focus and Practical Results

ADFIAP

November 2014

19.04.23 Основные принципы деятельности Внешэкономбанк 1

Vnesheconombank / /

VEB Profile

VEB is a driving force to ensure economic development and private investments in Russia

ADFIAP, Nov14 Sustainable Development: Strategic Focus and Practical Results 2

Lending to top priority industries which are of strategic importance in Russia Support for national infrastructure projects Subordinated loans to Russian banks SME support program Attracting direct investments via co-investment mechanisms through equity

funds

Export credit finance, insurance and guarantees (heavy machinery, high tech, equipment, etc.)

Co-operation agreements with all major export credit agencies and export-import banks

First Russian ECA established – VEB subsidiary with RUB 30bn in charter capital. All liabilities of the company guaranteed by the State

Government debt management Government financial asset management Pension fund management with dominant market share in Russia Support of the Russian economy during 2008-2009

Investment and Development

Export Support

Agent of the State

Vnesheconombank / /

VEB: Time-proven Agent of Russian State

Over 90 years of fruitful history in the Russian financial market

3

1922Russian Commercial Bank (renamed as Vneshtorgbank of the USSR) was the only bank entrusted with servicing export-import transactions and foreign currency transactions

1997

1999

2003

2007

2008

2009

2010

2011

2012-2014

VEB solely responsible for the “London Club” and “Paris Club” restructuring processes

VEB appointed as the agent for managing the Russian State Pension Fund assets

In June 2007 VEB became a state bank for development. Internal procedures and mandate based on KfW model Loan portfolio at that time was US$9.3bn

VEB acted as an agent of the Russian Government to provide anti-crisis support to the Russian economy

Anti-crisis measures completed, focus shifting back to development functions. Large pipeline of investment projects with focus on sustainable development reaching almost US$32bn

First Russian export credit agency (EXIAR) and Russian Direct Investment Fund established (100% VEB subsidiaries)

VEB is focused on expanding of development portfolio

ADFIAP, Nov14 Sustainable Development: Strategic Focus and Practical Results

Vnesheconombank / /

VEB Contribution to Sustainable Development

Sustainable Development: Strategic Focus and Practical Results 4

VEB is focused on sustainable development and maximization of environmental, social-economic & innovation effect in project implementation

PROJECTS

FINANCING APPROVED FOR

$116 bn

$70 bn

$46 bn

TOTAL PROJECTS VALUE

VEB PARTICIPATION

EXPECTED BUDGET EFFICIENCY

NUMBER OF PROJECTS

VEB PARTICIPATION

EXPECTED BUDGET EFFICIENCY

TOTAL PROJECTS VALUE

VEB PARTICIPATION

PROJECTS

2013:FINANCING APPROVED FOR

NEW WORKPLACES

NEW WORKPLACES

$13 bn $8 bn

$9 bn$24 bn

$24 bn

$8

Innovative projects

Energy efficiency

Rational use of natural resources

Environmental protection

Olympic projects

ADFIAP, Nov14

Vnesheconombank / /

Corporate & Social Responsibility

Sustainable Development: Strategic Focus and Practical Results 5

VEB has a unique strategic opportunity to carry principles of corporate & social responsibility into business masses

VNESHECONOMBANK – NATIONAL DEVELOPMENT BANKVNESHECONOMBANK – NATIONAL DEVELOPMENT BANK

MAIN PRINCIPLES IN CORPORATE & SOCIAL RESPONSIBILITY

SOCIAL RESPONSIBILITY

December 2011: VEB joinedUnited NationsGlobal Compact

DISCLOSURE & TRANSPARENCY

SOCIAL RESPONSIBILITY

PRIORITY - SOCIAL &

ECOLOGICAL PROJECTS

COMPLIENCE TO IFOs BEST

PRACTICES

INCREASING EFFICIENCY OF VEB

SOCIAL & ECOLOGICAL ACTIVITY & BUSINESS

ETHICS

INCREASING CORPORATE & SOCIAL

RESPONSIBILITY OF RUSSIAN COMPANIES &

VEB GROUP

VEB & PARTNERS:CONFIDENCE

ENHANCEMENT

ADFIAP, Nov14

Vnesheconombank / /

Clubs & Association

Sustainable Development: Strategic Focus and Practical Results 6

VEB actively participates in various unions of development institutions

WFDFIEOSD

ADFIAP, Nov14

SCO IBC

Vnesheconombank / /

IDFC Profile

The International Development Finance Club (IDFC) is a network of 23 leading development finance institutions with mandates for national, sub-regional, regional and international activities around the world

In 2013, 20 Members had total assets of more than USD 2,000 billion (World Bank Group: USD 576 billion). The total commitments of the IDFC Members added up to approximately USD 430 billion (World Bank Group: USD 53 billion)

The IDFC members have a successful and measurable track record of integrating climate change issues and related risks into their development mandates

Sustainable Development: Strategic Focus and Practical Results 7ADFIAP, Nov14

Vnesheconombank / /

Development Strategy 2015-2020

Sustainable Development: Strategic Focus and Practical Results 8ADFIAP, Nov14

Growth of project portfolio from $41 billion to $73 billion

Focus on infrastructure, innovations, energy efficiency and green financing

Integration of principles of sustainable development, social responsibility and best practices

Preparation and implementation of road-map of sustainable development

As of 16 October 2014 a new development strategy was approved

2124 24 25

414147

5154

74

0

20

40

60

80

2014 2015 2016 2017 2021U

SD b

n

Sustainable development projectsLoan Portfolio

Projected Loan portfolio, 2014-2021Key objectives

CONTACT DATA

State Corporation «Bank for Development and Foreign Economic Affairs (Vnesheconombank)» 9, Academic Sakharov ave., Moscow, RussiaStructured and Debt Finance Department

Anna LvovaEmail: Lvova@veb.ru

19.04.23 Основные принципы деятельности Внешэкономбанк 9