|
EBRD takes stake in Russian regional bank
The European Bank Reconstruction and Development (EBRD) has taken a 25 per cent stake in Nizhny Novgorod-based OAO NBD-Bank in an effort both to promote Russian regional banks and foster lending to micro and small enterprises (MSEs). The EBRD is acquiring 25 per cent plus one share of the ordinary shares of NBD-Bank and converting an additional $750,000 of debt into non-voting preference shares.
The deal represents the EBRD's first investment in an existing Russian regional bank since the August 1998 financial crisis.
"The EBRD's focus in Russia's banking sector is to promote competition and improved corporate governance, especially through regional banks that have demonstrated transparency and integrity. This investment should strengthen NBD-Bank's financial position, ensure sustainable funding for MSEs and enhance banking competition in the Nizhny Novgorod region," said Dragica Pilipovic-Chaffey, Director of the EBRD's Russia team and resident chief representative in Moscow.
NBD-Bank was one of the pilot private banks that took part in the launch of the EBRD's Russia Small Business Fund (RSBF) programme in 1994. It had become the second-biggest lender under the RSBF by the time of the August 1998 Russian financial crisis, and has remained a key regional partner in the programme. The capital increase will assist NBD-Bank in expanding its successful work with MSEs throughout the region.
|
