Translated version of this PSD: Russian
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.
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.
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.
Senior loan of RUB 450 million from EBRD. The overall maturity of the loan is three years.
RUB 450 million.
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.
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.
Alexander Tsakunov, Director, Corporate Finance
9, Sadovnicheskaya Embankment
115035 Moscow, Russian Federation
Tel.: +7 (495) 780 51 00 ext. 15194
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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