LenSpetsSMU and Alfa-Bank sign agreement to finance construction of two residential building blocks in partnership with international financial organizations


Alfa-Bank and CJSC SSMO LenSpetsSMU (part of the Etalon Group of Companies) have partnered with German bank Landesbank Berlin AG and Budostal-3 Export, a Polish construction company, to effect their second international financing agreement for the construction of two blocks of the residential complex “Swallow’s Nest” (“Lastochkino Gnezdo”). Insurance coverage is provided by an export credit agency, KUKE S.A. (Poland).

The Alfa-Bank credit line totals EUR 44 million, and construction of the two blocks will cost over EUR 50 million. The deal structure entails financing of 85% of the construction costs for each block, with a 4.5-year credit line. The loan is to be repaid in 4 installments, the first of which will be due six months after commissioning.

The Swallow’s Nest project is implemented by LenSpetsSMU in Nevsky District of Saint Petersburg, the complex will be situated on Oktyabrskaya embankment. The floor space of the two buildings under construction financed in partnership with international financial organizations totals over 82 thousand square meters, including an under-roof parking area accommodating 540 cars.

It should be noted that on August 8, 2012, a commissioning permit was obtained by CJSC SSMO LenSpetsSMU for the second block in Section 78A of the “Jubilee District” (“Yubileyny Kvartal”) residential complex. To implement the project, in 2010 LenSpetsSMU, Alfa-Bank and Budostal-3 Export entered into Russia’s first ever import-export financing deal for the construction of a residential building. Floor space of the building totals 66,601.5 square meters, its total living space being 52,939.2 square meters.

“LenSpetsSMU is one of the major partners of Alfa-Bank. The company’s impeccable business reputation and financial sustainability allow us to manage deals of varying complexity and length. We are ready to honor the partner’s needs and develop new forms of cooperation,” Marat Gareev, Corporate Business Director at the St. Petersburg branch of Alfa-Bank said.

Zdzis?aw Tragasz, the Chairman of the Board of Budostal-3 Export Sp. z o.o., noted, “Import and export credit financing is finding increasing use in various Russian industries, including construction. Having joined our forces with LenSpetsSMU, we have successfully completed our first 66,000-square-meters project in St. Petersburg, while other buildings covering about 130,000 square meters are under construction. And I am sure it is only the beginning.”

Anton Evdokimov, CEO of CJSC Etalon Management Company emphasized the high level of cooperation between LenSpetsSMU and Alfa-Bank and told, “This is the third deal of this kind in LenSpetsSMU credit portfolio. Not only borrowing terms appeal to us, but also the quality of service provided by both Alfa-Bank and Budostal-3 Export. Import and export credit financing, just like public borrowing, becomes a standard credit instrument which we are planning to use in our further work.”


Kseniya Savchuk

Acting head of Public Relations

+7 (812) 348-21-25


Yana Yashchenko

Deputy CFO

+7 (812) 348-09-95