Project description
and objectives:
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EBRD will provide up to RUB 600 million syndicated loan to Primsots bank under A/B loan structure. This is expected to take place over the coming months and is subject to market conditions.
Primsots bank is a relatively small regional bank which has limited access to international capital markets but which aims to diversify its sources of funding and leverage on EBRD financing. The EBRD transaction will be the first international syndication for the bank. The loan will help the bank to increase its financing to private SME and retail clients, as well as trade financing for corporate clients.
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Transition impact:
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Transition impact is expected to be achieved in the following areas:
Supporting the business growth of the borrower and financial intermediation in the RFE. The proceeds of the syndicated loan will be largely used to finance the expansion of the bank and help it compete with other banks in RFE, as well as increase financial intermediation in this important region. The EBRD’s syndicated facility will help to mobilise funding from commercial banks to support further growth.
Demonstration effect. It will create a positive demonstration effect by assisting assist a private bank committed to high standards of transparency to grow into a viable commercial institution in one of the regions of the Russian Federation where the penetration of banking services is lowest.
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The client:
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Primsotsbank is a privately owned Russian bank located in the Russia’s Far East with headquarters in Vladivostok. Primsots’ total assets as of 1Q2007 were EUR 169 million, total equity EUR 11.3 million, and net profit EUR 1.5 million. The bank is the third largest regional bank in Primorye region with a good regional network across the RFE region and a strategic focus on SME and retail lending.
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EBRD finance:
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RUB 150 million.
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Total project cost:
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RUB 600 million.
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Environmental impact:
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Primsotsbank will be required to comply with EBRD’s Environmental Procedures for Intermediated Finance through local banks and to apply them to all commercial lending activities under the syndicated loan including SME sub-loans. The implementation of the above procedures will ensure Primsotsbank’s compliance with the applicable national environmental, health and safety legislation, adherence to the EBRD’s Environmental Exclusion and Referral List for FIs, appointment of a member of senior management responsible for the implementation of the environmental procedures, and submission of annual environmental reports to the Bank.
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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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Olga S. Ivaschuk, International Banking Division
44, Partizanskiy Prospect,
Vladivostok, 690106, Russia
Tel.: +7 (4232) 42 42 42
Fax: +7 (4232) 42 20 76
E-mail: olga@pskb.com
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EBRD contact:
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Konstantin Soshnikov, Operation Leader: soshnikk@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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