Perpetual bonds — the nominal value is not redeemed, but they give “eternal” rental income — can be a promising source of extrabudgetary funding for infrastructure projects, noted in the National center for public-private partnership (PPP) and VEB.Of the Russian Federation. The application of this fininstrument in road construction are now discussing in the White house. Until the state finds money for major projects in the budget and its “pockets”. Yesterday in Yelabuga, Prime Minister Mikhail Mishustin announced the allocation of national welfare Fund of 150 billion rubles for the construction of the highway Moscow—Kazan — as part of the international transport route Europe—Western China.In conditions of economic instability, the initiators of infrastructure projects are increasingly turning to financial and debt instruments, more typical for the consumer market or the operations of the companies, according to a study by the National PPP center and the web.Of the Russian Federation. In a world increasingly use so-called perpetual bonds (such securities do not provide for mandatory redemption) and even crowdfunding. The researchers note that although perpetual bonds in the world practice are used less often than other instruments, in Russia they can be extremely popular, including for financing of large infrastructure projects.One such project was discussed yesterday in Elabuga (Tatarstan) — Prime Minister Mikhail Mishustin held a meeting on the construction of the road Europe—Western China. Under this project construction of Moscow—Kazan is estimated at 655 billion rubles for the period up to 2024, of which 390 billion rubles from the Federal budget. In 2020 will allocate 2.6 billion rubles., in 2021-m — 6.2 billion rubles., and in 2022, the total reached 117 billion by the state would be more money — 150 billion rubles, as reported by Mikhail Mishustin, it was decided to allocate from the national welfare Fund.In General, the lack of funds for road construction in Russia is well known. As noted earlier, the Deputy Prime Minister Marat Khusnullin, the need for “two to three times” higher than budget. Therefore, the government, he said, is considering the mechanism of attracting private investment through the placement of infrastructure bonds in the amount of 300 billion rubles for the Subject annuities and engaged in “Avtodor”, there is a need for extrabudgetary funding estimated at 400 billion rubles to 2024. Highway Moscow—Kazan just viewed the White house as one of the projects for implementation of which can be used such bonds. Moreover, yesterday Mikhail Mishustin has instructed the Finance Ministry to consider the necessity of using in the framework of this project the PPP mechanism.From the report�� PPP center and the web.The RF issue perpetual bonds are very beneficial for the Issuer because it allows you to raise money without returning the face value of the securities. Plus the same for holders of the bonds obtain predictable and regular coupon payments. However, experts warn about the risks in case of accelerating inflation the longer the investor will hold a perpetual bond, the less money it receives coupon payments. In addition, the cost of securities is heavily dependent on market interest rates. Thus, the bonds of the new Zealand infrastructure Fund Infratil, released in 2006 volume of $240 million and a price of $1 per share, the result of the global financial crisis, fell to $0.5 to 0.6, which naturally caused the dissatisfaction of their holders.With regard to crowdfunding, the transport projects it is rarely used in campaigns for raising public funds for the construction of roads, bike paths or bridges on the municipal level. However, in Russia this mechanism is also planned to study the PPP Center and the web.Of the Russian Federation plans to consider the creation of a platform RESINFRA (dedicated to PPP projects) investment crowdfunding service to raise funds of citizens for the realization of infrastructure projects.Evgenia Kryuchkova, Elabuga
