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EBRD establishes a co-financing facility for Russian companies
A US$ 40 million (ECU 33 million) co-financing facility has been set up following an agreement signed today between Banque Commerciale pour l'Europe du Nord (Eurobank), a French bank, and the European Bank for Reconstruction and Development (EBRD), in which each party is contributing US$ 20 million.
David Hexter, Deputy Vice President at the EBRD, said: “This co-financing facility means that the EBRD can reach more Russian companies as well as developing a partnership with Eurobank and its Moscow-based subsidiary, Evrofinance. Cooperating with banks such as Eurobank also increases the number of investment opportunities open to the EBRD, helping us to achieve our objectives of supporting private sector development. Already Evrofinance has proposed additional clients and projects for our consideration.”
Iouri V Ponomarev, President of Eurobank, said: "With this facility Eurobank will develop a close cooperation with EBRD, thus strengthening the project finance capabilities of Eurobank Group and enabling a greater catalytic impact on project finance activity in Russia."
Through the facility, medium-sized Russian private sector companies will be able to access funds for term loans, competitively priced. The EBRD will act as lender of record for each loan. Evrofinance will generate investment opportunities and provide credit analysis, while Eurobank and the EBRD will co-finance the projects.
Eurobank was incorporated in France in the 1920s and its main function of servicing trade with Russia has remained unchanged since then. Eurobank is majority owned by the Central Bank of Russia. Commercial Bank Evrofinance, the Moscow subsidiary of Eurobank founded in 1990, will act as the local agent of the facility.
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