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European Bank approves equity investment in Russian Project Finance Bank
The Board of Directors of the European Bank for Reconstruction and Development last week approved an equity investment of US$ 3.06 million (ECU 2.2 million) in the Russian Project Finance Bank, a new banking institution.
Ron Freeman, First Vice President of the European Bank in charge of Merchant Banking, said: "This investment represents the first step in building an institution that will play an exemplary role in the Russian financial sector. The Russian Project Finance Bank seeks to address the gap in the Russian market for medium and long term finance and for high quality investment banking advisory services, while setting new standards of efficiency and good banking practices for all Russian banks."
The Russian Project Finance Bank aims to become a key institution in the reform of Russia's financial sector and has attracted the support of several Russian financial institutions and corporations that will provide 49% of the bank's capital.
It also enjoys strong support from the Commission of the European Communities, which has committed a technical assistance budget of up to ECU 7 million for a programme including the provision of expatriates for key management positions, systems establishment, operational procedures, training and interim assistance for the Bank's Organisational Committee. These funds will be made available shortly through a restricted tender procedure to select a consortium of major European banks, consultants and training institutions.
The feasibility study and the preparation of the legal documentation has been funded by the British Government's Know How Fund.
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