Tatarstan small and medium-sized businesses enter the bond market

LLC "Zavod KrialEnergoStroy" from Kazan, which is the subject of small and medium-sized enterprises, entered the market of bonded loans. The company placed three-year bonds on the Moscow exchange in the amount of 150 million rubles, the placement took place within the 15-year bond program of the plant with a total amount of 2 billion rubles.

The plant has been operating in the Republic since 2009, supplying diesel and gas generators, voltage stabilizers, uninterruptible power supplies, lighting masts and solar panels, producing block containers for industrial power equipment. Among the clients of the company – "Tatneft", "AK Bars Holding", "Tattelecom", "Bashneft" and "Leroy Merlin".

The issue of corporate bonds allows small business formats to attract additional funding. This tool for attracting financing is an alternative to Bank lending, it does not require collateral, and businesses have the opportunity to independently choose the parameters of the loan.

In Tatarstan, there is an interdepartmental working group of representatives of the RT Ministry of economy, the branches of the Bank of Russia in Tatarstan, ministries and departments, associations, enterprises, regional and Federal participants in the financial market. The working group is implementing programs to create conditions for the Republic's companies to enter the bond market.

Today, small and medium-sized businesses can compensate for some of the costs of issuing exchange-traded bonds and paying a coupon on them. The Federal budget subsidizes up to 70% of bond coupon payments and up to 1.5 million rubles for bond placement. Since January 1, 2020, the Business Support Fund subordinated to the Ministry of economy of the Republic will provide services to subsidize part of the costs of issuing bonds and paying coupon income on them for entrepreneurs of Tatarstan.