CENTER-INVEST BANK EQUITY INVESTMENT & SME CREDIT LINE

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 34640

Status Repaying

Location

Russia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 34640

Status Repaying

Location

Russia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

22 Jun 2004

Disclosure date

18 May 2004

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The proposed project comprises an equity investment for subscription of up to US$ 8.15 million to the newly issued shares and 5-year US$ 5 million senior loan for small and medium companies lending. The operation will support the development of one of the leading private banks in Southern Russia by increasing its capital and strengthening its operations, growing its small and medium loans portfolio and enhancing its competitive position in the region. The project will also contribute to the improvement of Center-Invest Bank’s corporate governance and internal systems.

Transition Impact

The proposes project is aimed at contributing to the increase of still insufficient financial intermediation in the Russian market. The project’s transition impact will be most prominent in the following four areas:

(1) Enhancement of competition in the banking sector. As a result of the project, Center-Invest Bank will be able to assert itself as a credible regional competitor to larger Moscow-based and state-owned banks

(2) Strengthening of small and medium companies development by promoting financial intermediation

(3) setting standards for corporate governance

(4) development of institutional efficiency, transfer and dispersion of skills. The EBRD investment will require implementation of the best international practice in corporate governance, bank operations and internal procedures.

The Client

Center-Invest Bank, a bank based in Rostov-on-Don, one of the leading financial institutions in Southern Russia with an excellent knowledge of the local market focussed on small and medium companies financing and retail banking.

EBRD Finance

(a) Equity investment of up to US$ 8.15 million into newly issued ordinary shares

(b) Five-year US$ 5 million senior loan for further on-lending to small and medium companies.

Project Cost

Up to US$ 13.15 million

Environmental Impact

The client will be required to comply with EBRD’s Environmental Procedures for Intermediated Finance through local banks. These include

ensuring compliance with applicable national environmental, health and safety requirements
adherence to the Environmental Exclusion and Referral List
submission of annual environmental reports to the Bank and nomination of a member of CIB senior management to be responsible for environmental issues.

Technical Cooperation

Consultant: ING Consulting

Type of support: Trade finance advisory services

Donor: Government of Netherlands

Company Contact

Ms. Larisa Lutsenko, Deputy Chairman of Management Board
Bank Center-Invest
62 Prospect Sokolova,
Rostov-on-Don, Russia, 344010;

Tel. + 7 8632 674 825
Fax +7 8632 640 640

e-mail: lutsenko@centrinvest.ru

Transition impact

ETI Score:100

PSD last updated

01 Feb 2019

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

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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