Rosbank Syndicated Loan

Location:

Russia

Project number:

36215

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

29 Nov 2005

Status:

Completed

PSD disclosed:

28 Oct 2005

Project Description

The proposed project envisages a broadening of the EBRD relationship with Rosbank with new term financing consisting of:

  • USD 30 million mortgage loan; and
     
  • USD 150 million syndicated loan under A/B structure, with EBRD finance of USD 50 million.

The project aims to assist the bank in developing its business in favour of (i) private sector small and medium sized enterprises (SME) operating in the Russian Federation and of (ii) retail customers with an offering of residential mortgage products. Through syndication, the project will also contribute in further diversification of the bank’s funding base.

Transition Impact

  • The proposed project will promote financial intermediation in Russia by using the broad regional network of Rosbank/OVK to reach Russian SME and retail customers with longer tenor funding, which is essential for capital financing and mortgages.
     
  • The proposed project is expected to foster competition in the banking sector by giving borrowers in different regions across Russia greater choice in accessing banking products which best fit their needs.
     
  • Through benchmarks for high standards of corporate governance, business practices and financial discipline, the project will further contribute to institutional building of the bank.
     
  • EBRD’s involvement in the syndicated loan transaction will contribute to broadening the range of financing partners and lengthening the maturities of funding provided by commercial banks.

The Client

Rosbank is a large universal bank, owned by Interros. The consolidation of banking business of the OVK banking group, which was purchased in 2003 by Interros, with Rosbank created one of the largest private banks in Russia with the second largest regional branch network after Sberbank.

EBRD Finance

Term Loan of USD 80 million (EUR 67 million).

Project Cost

USD 180 million (EUR 150 million).

Environmental Impact

Rosbank will be required to comply with EBRD’s Environmental Procedures for Intermediated Financing through Local Banks and Environmental Guidelines for Residential Mortgage Lending, including adherence to the Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety legislation, and submission of annual environmental reports to EBRD.

Technical Cooperation

None.

Company Contact

Mr. Evgeny Yarovikov, Director of Financial Institutions Dept

Email: eYarovikov@rosbank.ru

Tel: +7 095 956 6727
Fax: +7 095 725 2404

 

Business opportunities

For business opportunities or procurement, contact the client company.

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