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Economic Analysis: Theory and Practice
 

Applying the savings and credit scheme to finance projects for comprehensive multi-storey development

Vol. 19, Iss. 3, MARCH 2020

Received: 29 January 2020

Received in revised form: 7 February 2020

Accepted: 18 February 2020

Available online: 30 March 2020

Subject Heading: EVALUATION OF INVESTMENT PROJECTS

JEL Classification: G11, G12, R30, R31

Pages: 508–519

https://doi.org/10.24891/ea.19.3.508

Chudnovets A.Yu. Siberian Federal University (SibFU), Krasnoyarsk, Russian Federation
science@bk.ru

https://orcid.org/0000-0002-6206-5470

Plisova A.S. Siberian Federal University (SibFU), Krasnoyarsk, Russian Federation
as.plisova@yandex.ru

https://orcid.org/0000-0002-2673-9941

Subject We consider the efficiency of comprehensive multi-storey development as an investment project and the main criteria for attracting borrowed funds through bond issue; analyze special features of the two-tier financing scheme for multi-storey development with a detailed calculation of values.
Objectives The study aims to design a universal financing scheme with the possibility to modify parameters for specific investment projects in the construction sector for practical application by construction companies. We focus on developing an effective alternative to escrow accounts enabling better distribution of financial burden on the company over the entire life of investment project. It should ultimately prevent the increase in the price per square meter of residential and non-residential premises and the longer construction period.
Methods We employ methods of analysis, synthesis and modeling of savings and credit scheme of financing.
Results To simplify understanding the application of the bond loan by developers, we prepared a specific investment project for the existing construction company with a step-by-step calculation of the savings and credit financing scheme.
Conclusions Earlier, the bond loan as a borrowing tool has not been detailed and formulated as a clear mechanism for funding company's activities. We offer our own description of the application of savings and credit scheme to finance projects for comprehensive multi-storey development with step-by-step calculations.

Keywords: comprehensive development, multi-storey building, bond loan, savings scheme, credit scheme

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