Mezzanine Financing as a Source of Financing for Business Activities in Russia in a Crisis

Liliya Zavyalova, Svetlana Garanina, Nataliya Levochkina

2021

Abstract

The article considers mezzanine financing as a source of financing for the growth and development of Russian companies. This financial instrument is quite widespread in the market economy of foreign countries. In Russia mezzanine financing has been introduced relatively recently. However, this tool has a great potential for development. It is due to the fact that in the conditions of an unstable economic situation caused by various reasons, including the coronavirus crisis, it becomes difficult for medium-sized businesses to apply traditional external sources of financing, such as bank loans, project and venture financing. In this situation companies can use mezzanine capital, which is a hybrid financial instrument that combines elements of equity and debt capital. Special attention is paid to the characteristics of the debt and equity parts of the mezzanine financing transaction. Conclusions are drawn about the industry availability of mezzanine financing for medium-sized businesses in Russia. The minimum threshold level of return on sales for such businesses has been calculated in order to qualify for mezzanine financing from a large Russian mezzanine investor – Sberbank

Paper Citation

in Harvard Style

Zavyalova L., Garanina S. and Levochkina N. (2021). Mezzanine Financing as a Source of Financing for Business Activities in Russia in a Crisis. In Proceedings of the 1st International Scientific Forum on Sustainable Development of Socio-economic Systems - Volume 1: WFSDS, ISBN 978-989-758-597-5, pages 380-384. DOI: 10.5220/0010669000003223

in Bibtex Style

@conference{wfsds21,
author={Liliya Zavyalova and Svetlana Garanina and Nataliya Levochkina},
title={Mezzanine Financing as a Source of Financing for Business Activities in Russia in a Crisis},
booktitle={Proceedings of the 1st International Scientific Forum on Sustainable Development of Socio-economic Systems - Volume 1: WFSDS,},
year={2021},
pages={380-384},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010669000003223},
isbn={978-989-758-597-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Scientific Forum on Sustainable Development of Socio-economic Systems - Volume 1: WFSDS,
TI - Mezzanine Financing as a Source of Financing for Business Activities in Russia in a Crisis
SN - 978-989-758-597-5
AU - Zavyalova L.
AU - Garanina S.
AU - Levochkina N.
PY - 2021
SP - 380
EP - 384
DO - 10.5220/0010669000003223