MDM Bank Syndicated Loan

Location:

Russia

Project number:

36909

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

27 Jun 2006

Status:

Complete

PSD disclosed:

26 May 2006

Project Description

Sibacadembank (SAB) is planning to raise a senior A/B loan of USD 60 m, of which USD 20 m (A loan) will be the EBRD portion and USD 40 m (B loan) will be syndicated to commercial banks.

The project is aimed to assist SAB in raising a syndicated loan beyond the 12 months horizon available to SAB at present. The proceeds will be used for SME and retail lending, which are the main business lines of the bank.

EBRD is also considering acquisition of a1.05% stake of SAB in 2007, once it is merged with Uralvneshtorgbank.

Transition Impact

This project further enhances the transition impact made by EBRD through assisting the development of a leading regional bank in the Siberian Federal District (SFD). This project will be the first syndicated loan to a Russian regional bank for maturity of more than 12 months. The proposed project will assist SAB to: a) reduce refinancing risk and secure a longer term amortising facility; and b) diversify its funding base. Both of these factors are increasingly important as SAB seeks to compete with its larger state-owned and Moscow-headquartered competitors.

The Client

SAB is a universal regional bank established in 1990 in Novosibirsk and operating across the largest private banking network in SFD and the Russian Far East. At end-2005 SAB was ranked 40th and 44th in terms of total assets and equity respectively among the Russian banks. SAB has B1/Positive rating from Moody’s and B/Stable from Fitch.

EBRD Finance

EBRD will provide SAB with an A loan of USD 20 m.

Project Cost

Senior A/B loan of USD 60 m, of which USD 20 m (A loan) will be the EBRD portion and USD 40 m (B loan) will be syndicated to commercial banks.

Environmental Impact

SAB adopted EBRD’s Environmental Procedures for Intermediated Finance through Local Banks in the full range of its commercial lending activities. SAB is also in full compliance with applicable national environmental, health and safety requirements and adheres to the Environmental Exclusion and Referral List.

Technical Cooperation

None.

Company Contact

Mr. Ilia Mitelman, Deputy Chairman of the Management Board

Tel: + 7 495 9357261
Fax: + 7 495 9357261

Email: Mitelman@mtbank.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

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