Bank project finance: a case study of financing investment activity of enterprises in different industries

The successful implementation of project finance makes it possible to increase the competitiveness of companies in the long term, which in turn is a necessary condition for balanced growth of the economy. However, in the context of macroeconomic uncertainty, the quantity and quality of long-term capital intensive projects decrease, which in turn affects the volume of financing. Global integration of finance and cash flow, as well as the international economic crisis seriously influence the process of bank financing for investment activity of enterprises. In this regard, it is necessary to analyze the specific features of bank project finance for projects of companies in different sectors of the Russian economy. The main objective of the study is to identify the specific features of bank project financing for investment activity of enterprises in different industries, as well as to develop recommendations and proposals which will improve the efficiency of that financing. Investment projects of enterprises in different industries financed by Russian and foreign banks are considered based on the system approach, comparative analysis and elements of statistical analysis. Analysis of bank financing for investment activity of domestic enterprises has allowed us to: 1) determine the interest of banks in financing of structured projects on the principles of project finance;2) identify the main trends in the field of project finance in Russia; 3) give some recommendations,application of which will improve the reliability of investment management. It has been concluded that the present stage in the development of bank financing for investment projects of enterprises in Russia and abroad is associated with increased volatility in the financial market. However, in the context of the international financial crisis, banks are interested in financing well-structured projects on the basis of project finance. The article describes the main trends in banking project finance in Russia. Furthermore, the paper justifies the need to develop a clear phased algorithm to assess impact of the projects, intensive development of methods of risk diversification. In view of the need for rational allocation of financial resources between projects, it appears appropriate to form financial portfolio, which will allow for increased control over projects in the case of their financing by banks.