Project description
and objectives:
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The proposed project is aimed at providing Tier II capital to medium-sized
Russian banks that have limited access to capital funding.
Under the proposed project the Bank would extend subordinated loans directly
to the selected partner banks. The Framework partner banks would utilise the
funds for regional / business expansion. It is anticipated that the Framework
funds will be fully drawn during 2006-2007.
Consideration will be given to a subsequent capital markets transaction to
package and securitise the partner banks’ obligations under the Framework.
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Sub-projects:
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- Moscow Credit Bank - Subordinated Loan (Framework)
- URSA - Subordinated Loan (Framework)
- Locko Bank - Subordinated Loan (Framework)
- Probusinessbank - Subordinated Loan (Framework)
- SKB Bank Subordinated Loan
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Transition impact:
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The proposed transaction would support the development of medium-sized Russian
banks, which at present have limited opportunities to raise capital in the
market and have insufficient retained earnings to support the growth.
The key transition impact areas will be: promotion of competition and increase
of financial intermediation in the Russian banking sector.
A possible subsequent securitisation of the Framework partner banks’
obligations would further enhance the transition impact and would contribute
to the development of capital markets in Russia.
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The client:
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The project is aimed at the Bank’s existing partner banks among: (i) regional
banks; and (ii) mid-sized Moscow-based banks. Each partner bank will be
assessed individually in accordance with specific criteria, which among other
things include: growth prospects; current capital adequacy; financial
performance.
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EBRD finance:
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USD 150.0 million.
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Total project cost:
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USD 150.0 million.
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Environmental impact:
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The participating banks will be required to apply EBRD’s Environmental
Procedures for Intermediated Financing through Local Banks to the full range
of their commercial lending activities. The banks will be required to comply
with applicable national environmental, health and safety and labour
requirements, adhere to the FI Environmental Exclusion and Referral List,
submit annual environmental reports to the EBRD and nominate a member of
senior management to be responsible for environmental risk management and
implementation of the environmental procedures.
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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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Alexander Saveliev, EBRD
Tel: +44 20 7338 6672
Fax: +44 20 7338 6119
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EBRD contact:
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Alexander Saveliev, Operation Leader: saveliea@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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