OEB RSECF EE Loan III (Residential)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 45327

Status Complete

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 45327

Status Complete

Location

Russia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

26 Nov 2013

Disclosure date

01 Oct 2013

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."

Translated version of this PSD: Russian

Project Description

The EBRD is considering a loan to Orient Express Bank (“OEB”) under the residential component of EBRD’s RUSEFF. OEB, based in the Russian Far East, became an EBRD partner in 2007. Since 2012, when it joined the RUSEFF, it has successfully disbursed loans to its business clients for investments in energy efficiency. Thanks to OEB’s network, the second largest in Russia, the project will contribute to improving households’ and private sector enterprises’ access to finance for investments in energy efficiency, including in Siberia and the Far East.

Transition Impact

The proposed loan is only the second such loan under the residential component of EBRD’s RUSEFF, and the first such loan to a bank with a country-wide outreach. The project will generate transition impact through its demonstration effect by kick-starting bank lending for energy efficiency improvements in residential buildings. It will support the development of a practically non-existent market for residential energy efficiency funding and demonstrate its social and economic benefits. Moreover, the implementation of this project by OEB will demonstrate to Russian commercial banks the market potential in the sector. Finally, the project will open the window for financing housing associations/condominiums as well as corporate entities (energy service companies, housing management companies, home owner associations and providers of housing maintenance services) on residential energy efficiency projects.

In addition to the demonstration effect, the project will also contribute to the transfer of skills. Dedicated technical assistance (“TC”) will help OEB with designing products and setting up procedures. On the level of sub-borrowers, a comprehensive package of technical assistance will address information asymmetries as well as capacity constraints. OEB’s clients - sub-borrowers - will become more familiar with energy efficiency opportunities in the residential sector, the requirements of financial institutions for providing commercial financing and how to better structure loan applications.

The Client

OEB was set up in 1991 but embarked on a retail and micro and small enterprise (“MSE”) lending strategy only in 2005. Since then, OEB has evolved into a retail and MSE lender of federal importance, which has among its shareholders “Barings Vostok Capital Partners” and the IFC. In 2012, OEB joined EBRD’s RUSEFF, quickly growing into one of its most important partner banks.

EBRD Finance

Senior loan of RUB 450 million from EBRD. The overall maturity of the loan is three years.

Project Cost

RUB 450 million.

Environmental Impact

Categorised FI. OEB has been satisfactorily applying the EBRD's E&S requirements under existing transactions and will be required to continue to comply with the EBRD's PR2 and PR9. An independent Project Consultant will be in place to ensure that EE sub-projects comply with national EHSL requirements and the EBRD's E&S eligibility criteria. OEB will submit reports to the Bank on the RUSEFF loans and on environment, health and safety and labour issues associated with its operations and portfolio.

Technical Cooperation

Between 2008 and 2011, OEB received TC support, funded by Japan and the Russia Small Business Technical Assistance Special Fund and implemented by EBRD consultants. TC support helped OEB develop and strengthen internal capacities for MSE lending and expand lending activities to new regions.

OEB will receive comprehensive TC support for implementation of the project, provided by Kommunalkredit Public Consulting GmbH, funded by the Austrian Ministry of Finance. The technical consultants will support OEB with establishing internal procedures and the launch of the residential energy efficiency product across OEB’s branch network. Furthermore, the consultant will provide advisory services to Russian homeowners on the selection of best available technologies, project preparation, current energy efficiency standards for buildings and the existing regulatory framework.

Company Contact

Alexander Tsakunov, Director, Corporate Finance
9, Sadovnicheskaya Embankment
115035 Moscow, Russian Federation
Tel.: +7 (495) 780 51 00 ext. 15194

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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