Developers’ project finance amount exceeds ₽6.1 trillion
Growth in the portfolio of loans to developers was moderate in 2023 Q4, a mere 2% as compared to 11% in 2023 Q3. First of all, this was due to a significant increase in commissioned facilities, for which, after opening escrow accounts, funds are mainly used to repay loans.
High sales resulted in a growing inflow of funds into escrow accounts. They totalled ₽1.9 trillion over the quarter and hit a new record high as compared to Q3. Consequently, the balance of these accounts exceeded ₽5.7 trillion (+6%), and the ratio of debt coverage with funds in escrow accounts rose to 90% from 86%.
The increase in funds in escrow accounts constrained growth in the rate on project finance (+0.8 pp over the quarter to 6.4%), which was lower compared to corporate lending in general (+1.8 pp to 12.1%). The cost of project finance still depends on the dynamics of demand for housing and, accordingly, the amount of funds in escrow accounts.
More details are available in the review Project Finance in Housing Construction in 2023 Q4.