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EBRD takes 25 per cent stake in first investment bank in Russian oblast of Krasnodar
To secure the start-up of the first investment bank to be established in the Krasnodar oblast in south west Russia, the European Bank for Reconstruction and Development (EBRD) is investing US$ 2.5 million (ECU 2.0 million) in the Investment Bank of Kuban (IBK). The new bank, a joint venture between the Cyprus Development Bank (CDB) and Russia's Inkombank, will offer long-term financing, equity and corporate finance advisory services.
"By investing in IBK, the EBRD, along with the two sponsors, can help the bank win the confidence of both domestic and foreign clients," David Hexter, Deputy Vice President of the EBRD, said: "As Krasnodar's first investment bank, it will provide much needed skills, technical competence and financial assistance in the region. Its presence will bolster the development of a local financial infrastructure as well as assist local private sector companies."
The main shareholder, with 50 per cent, and principal sponsor is CDB, which has been operating in the region for more than a year and will have management responsibility for IBK as well as for professional backup staff and training. Its General Manager, John Joannides, said: "We shall draw upon our 33 years of active involvement in the development of the Cypriot economy in making IBK the leading financial and development institution in Krasnodar. We are confident that, very quickly, IBK will become the financier and management adviser of choice for private sector business in Krasnodar as well as the primary vehicle for channelling foreign investment into the region."
The EBRD's 25 per cent share is matched by Inkombank, one of Russia's largest banks. Vladimir Vinogradov, President of Inkombank, said: "We consider this project, which is a team effort with the EBRD and CDB, as one of the most important investments of the year. We hope that the professional skills of Inkombank, along with the management experience of CDB and the stature of the EBRD, will ensure the bank's success. Inkombank is committed to supporting IBK's many existing and potential clients. We believe that the coming years will see other mutually successful projects with the EBRD, developed in the context of our general broad cooperation with international financial institutions."
Krasnodar is located on the eastern coasts of the Black Sea and the Sea of Azov. With a population of around 5 million, it has a highly developed agricultural sector and extensive onshore and offshore oil and gas reserves, as well as a significant potential for tourism. The region's ports and other transportation facilities make Kransodar a key gateway for Russian trade. Many Russian banks operate in the region but IBK will be the first with foreign partners.
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