Project description
and objectives:
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The proposed project consists of three senior debt facilities to SG Group-owned banking and leasing operations in Russia, as follows:
- Senior Term Loan - to Banque Société Générale Vostok (BSGV) for on-lending to Russian private companies and to individuals as retail loans;
- Mortgage Loan - to finance BSGV's loans for residential mortgages;
- Leasing Loan - to BSGV Leasing (BSGVL) for financing its leases to Russian private companies.
The main objective of the project is to support SG Group's strategic expansion in Russia by:
- Providing long-term debt facilities to BSGV and BSGVL helping them to grow their operations with Russian corporate customers and retail clients;
- Helping to diversify SG Group's Russian subsidiaries' funding base and improve their asset liability structure by providing direct long term debt finance;
- Assisting SG Group in approaching the commercial debt market with Russian assets by taking the lead in syndication of the Loans.
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Transition impact:
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Considering the low banking sector intermediation level in Russia where the domestic credit to enterprises ratio to GDP stood at 18% at the end of 2002, and the dominant position of state owned banks in the market, the Project is expected to have a positive impact on the country's economic development by providing customer access to medium and long term finance and on the development of the banking sector through supporting the expansion of banking institutions which apply best banking practice in their operations and are in the forefront of product development.
This will be the first syndicated loan led by the EBRD for a financial institution in Russia attracting new investors to the Russian banking market.
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The client:
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BSGV - the borrower of the Senior Term and Mortgage Loans.
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BSGVL - the borrower of the Leasing Loan.
BSGV was established in April 1993 as a fully owned Russian subsidiary of SG Group. BSGV is a universal commercial bank providing corporate and retail banking services. BSGVL is a 100%-owned leasing subsidiary of BSGV established in June 2003 with the focus to provide lease financing to BSGV's existing and new clients.
SG Group is the third largest banking group by total assets in France. SG Group is rated Aa3 by Moody's and AA- by S&P with a stable outlook.
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EBRD finance:
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Senior debt for on-lending to private sector in the aggregate amount of up to USD 125 million consisting of the following:
- Senior Term Loan of up to US$ 75 million, with an A/B loan structure, B loan to be syndicated;
- Leasing Loan of up to US$ 25 million, with an A/B loan structure, B loan to be syndicated;
- Mortgage Loan of between US$ 20 to 25 million, which may be syndicated.
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Total project cost:
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US$ 125 million.
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Environmental impact:
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BSGV and BSGVL are required to apply the Bank's environmental procedures for local banks, leasing or mortgage lending, depending on the facility. In implementing these procedures, BSGV and BSGVL will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Michel Bricout
Chairman and Managing Director
E-mail: michel.bricout@socgen.com
Mr. Jean-Francois Myard
Deputy Managing Director
E-mail: jean-francois.myard@socgen.com
Banque Société Générale Vostok
2 Yakimanskaya Naberezhnaya
Moscow, 119180 Russia
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EBRD contact:
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Mikhail Grechikho, Operation Leader: grechikm@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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