Promsvyazbank Equity Investment

Location:

Russia

Project number:

40314

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

21 Oct 2009

Status:

Complete

PSD disclosed:

12 Oct 2009

Project Description

The EBRD is considering equity investment into newly issued ordinary voting shares of Promsvyazbank, one of the largest private banks in the Russian Federation, by subscribing for up to 12 percent of capital and voting rights.

The operation will come as part of EBRD response to the financial crisis and will contribute to the capitalisation of the Russian banking system by supporting one of the key market players in the difficult environment.

Transition Impact

The operation will provide new capital to Promsvyazbank and thus will render support to one of the major Russian banks at the time when capital is scarce in the banking system.

EBRD will assist Promsvyazbank in integrating small regional banks acquired so far and in further developing banking business in Russia’s regions.

The participation of the EBRD is also expected to result in further enhancements in corporate governance and institution building.

The operation intends to send an important positive message to the market and have a strong demonstration effect.

The Client

Promsvyazbank is the 11th largest bank in Russia and the second largest locally owned private universal bank with network covering over 90 Russian cities. The bank is owned by local shareholders Messrs. Alexey and Dmitry Ananiev owning PromsvyazCapital B.V. (84.68% in total) and Commerzbank AG, Germany (15.32%).

EBRD Finance

In view of sensitivity of the project, information will be disclosed after Board consideration.

Project Cost

In view of sensitivity of the project, information will be disclosed after Board consideration.

Environmental Impact

Categorised FI in accordance with EBRD's 2008 Environmental and Social Policy. Due diligence has reviewed the capacity of the client to effectively adopt and implement Bank’s Performance Requirements and found that it is satisfactory. Promsvyazbank, an existing client, will be required to comply with the Bank's Performance Requirements 2 (Labour and Working Conditions) and 9 (Financial Intermediaries) which include implementation of the Bank's Environmental and Social Procedures for Corporate Lending across the full range of its business activities and adherence to EBRD's Environmental and Social Exclusion and Referral Lists. Promsvyazbank will be required to submit to the Bank annual reports on environmental and social matters and the implementation of Performance Requirements 2 and 9.

Technical Cooperation

None.

Company Contact

Andrey Naumenko
Investor Relations
Tel; +7 (495) 411 51 19
E-mail: ir@psbank.ru

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

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