Key project finance indicators significantly increase in June
After a slight decline in April—May, the main project finance indicators in equity construction bounced back, or even surpassed early 2020 growth rates by a number of parameters. These findings are based on the survey of the banks authorised to open developers’ payment accounts and escrow accounts. The recovery of the market was boosted by the governmental measures supporting the construction industry.
Over the month, the number of escrow accounts rose by 21,600, or 21%, to exceed 121,700. Equity construction participants’ funds in escrow accounts increased by 20%, to 420.3 billion rubles. This is the highest growth rate since the beginning of 2020.
As of 1 July 2020, banks signed nearly 1,400 loan agreements with developers. The overall amount of credit facilities exceeded 1.45 trillion rubles, of which developers have already drawn down 534.1 billion rubles depending on their needs in funds for construction (growth since the beginning of the year — nearly 90%).
The average interest rate on loans granted to developers ranges from 3.7% to 5.5% (across federal districts). The size of the interest rate under each particular agreement largely depends on the amount of funds accumulated in escrow accounts, as well as other factors (e.g. support programmes for developers — small and medium-sized enterprises, programmes subsidising interest rates on housing loans).
To date, 47 constituent territories of Russia have completed 165 projects delivered using escrow accounts. Nearly 8,600 escrow accounts were released for these projects, and the funds transferred from them to developers and banks to repay issued loans exceeded 18.7 billion rubles.