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Avtobank receives US$ 50 million in EBRD financing package
To assist the development and corporate growth of the Russian Avtobank, the European Bank for Reconstruction and Development (EBRD) is making a US$ 20 million (ECU 16 million) equity investment, equal to 8 per cent of the bank's capital, as well as providing a US$ 30 million (ECU 24 million) loan.
"The EBRD's investment and loan will enable Avtobank to strengthen its capital base and provide medium and long-term funds for on-lending to private industrial enterprises," said David Hexter, Deputy Vice President of the EBRD. "This is the fourth equity investment that the EBRD has made in a Russian bank."
In a separate transaction, Avtobank has signed a US$ 10 million trade facility under the EBRD's US$ 100 million Trade Facilitation Programme, in which letters of credit and other short-term trade finance instruments will be guaranteed by the EBRD.
With operations in and around Moscow, Avtobank provides competitive financial services to corporate clients and individuals. It started its activities in December 1988, initially with an industrial focus. It has since diversified to a broader range of activities, including a well-developed business as a clearing bank for a large number of regional banks. Avtobank is among the 15 largest banks in Russia.
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