The investment strategy is based on a developed plan and an implementation roadmap at all phases of the Holding’s development

The strategy is built upon the existing sources and forms of investment, their availability and potential use efficiency. The investment strategy is subject to relevant adjustments for changing external conditions and new opportunities.

The investment strategy takes into account the overall economic development strategy of the Russian Federation, broad investment market conditions and its specific segments, particularly, implementation of individual investment projects both at federal and regional levels.

We focus on large infrastructure sector projects. The company’s operations span a broad spectrum of infrastructure assets, with the key ones being:

  • toll roads
  • airports
  • sea and river ports
  • transport logistics infrastructure
  • municipal utility networks and waste management
  • select investments into agricultural sector
  • other related sectors with infrastructure features

Project implementation arrangements may include instruments of concessions and public-private partnership (construction and operation of a new infrastructure asset), and also acquisition and subsequent management of existing assets.

The Holding seeks to balance project investment risks and expected yield. The Strategy envisions long-term investments and active project participation at all project lifecycle phases.

Our Strategic Priorities:

Implement arm’s length projects, ensuring their attractiveness for future buyers.
Ramp up the investment portfolio with major (over RUR10 bn), commercially attractive and innovative projects.
Bring Russian and international financial and strategic co-investors into our projects, build consortiums with reputable participants.
Make active use of a broad range of financial and technology expertise, available with VTB IH Group companies, including technical client and project management services, toll road operation, related developer services for real estate.
Actively implement previous experience in project management, focus on achieving maximum market capitalization both for specific investments and the overall portfolio.

Risk management

Allocation of risks in PPP projects (together with shareholding and liability) is a key category, differentiating PPP from any other forms of investment cooperation.
Utilization of project financing for PPP implementation enables identification and accurate allocation of risks between different project participants in such a way that every participant is responsible for the risk he is most competent to offset.
To ensure financial attractiveness of a project, its commercial structure is to focus on successful mitigation of the following project risks:
  • Reliable revenue flow / guarantor solvency
  • Financing availability, considering risks, related to interest rates and FX rates
  • Political and legal framework
  • Technology and construction risk / delay in start-up risk
  • Adequate related infrastructure
  • Operational risk, operations and maintenance
  • Environmental risk
  • Force Majeure