Project description
and objectives:
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The proposed project envisages EBRD’s subscribing to RUR 292,516,620 worth of
preference shares (equivalent to US$ 10 million at the current exchange rate
of 29.1 RUR/US$). The project is aimed at strengthening IMB Tier 1 capital to
support the organic growth of the bank’s business.
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Transition impact:
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The project will provide IMB with Tier 1 capital and financial resources
needed for implementation of the medium-term strategy of IMB to develop core
banking business and in particular lending to private sector SME clients and
retail banking. Via IMB the EBRD aims to foster competition and financial
intermediation in the Russian banking sector, as well as support best banking
practices adopted by IMB.
The structure of the proposed capital increase, with EBRD’s subscribing for
preference shares rather than ordinary shares, will allow HVB and Nordea to
consolidate over 75% of voting shares in IMB, thus streamlining the ownership
structure in IMB. It also introduces a new investment product (preferred
shares) for other minority shareholders not previously offered.
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The client:
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IMB was founded in 1989 and has emerged as the one of the leading private
banks in Russia with reputable shareholders and excellent local reputation. In
the aftermath of the 1998 financial crisis in Russia the bank was
recapitalised by its shareholders, and in 2001 it merged with Bank Austria
Creditanstalt’s subsidiary in Moscow.
IMB has a ‘B+/Stable’ rating by Standard & Poor’s and ‘BB-/Positive’ by Fitch.
Fitch would expect IMB’s long-term rating to increase to ‘BB+’, once the share
capital increase has taken place and the anticipated changes in shareholder
structure are complete.
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EBRD finance:
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Equity investment of the US$ 10 million equivalent.
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Total project cost:
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US$ 10 million equivalent.
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Environmental impact:
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IMB has demonstrated full compliance with applicable environmental
requirements of the Bank within the existing operations. IMB will be required
to continue to comply with EBRD’s Environmental Procedures for Intermediated
Financing through Local Banks.
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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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Denis Plenkin
Head of Department, Financial Institutions Division
9, Prechistenskaya Emb
Moscow
Russia
Tel: +7-095 258-6587
Fax:+7-095 258-7272
E-mail: DPlenkin@imbank.ru
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EBRD contact:
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Viktor Marchenko, Operation Leader: marchenv@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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