The EBRD is considering provision of senior debt to KMB for on-lending to private micro and small enterprises in the Russian Federation.
The proposed debt funding will allow KMB to meet the continued demand from Russian micro, small and medium-sized enterprises (MSMEs) for financing. The sector has suffered considerable contraction as a result of the ongoing difficult market conditions and liquidity constraints in Russia.
Transition impact of this project will be achieved through the provision of funding to MSMEs which continue to be underserved particularly in view of the financial crisis.
Small Business Credit Bank (“KMB Bank” or “KMB”) was set up by EBRD as a bank dedicated to working with micro, small and medium enterprises (“MSME”). It is now a leading bank for MSME-lending across many regions of Russia and has expanded its product range to offer retail and corporate products. Banca Intesa SanPaolo is the majority shareholder with 75% of shares. EBRD retains a minority share of 25%.
Up to USD 75 million of senior debt funding. A trade financing facility of up to USD 5 million to help KMB establish a factoring unit will be included in the finance.
Up to USD 75 million.
KMB will be required to comply with EBRD's Performance Requirements for Financial Institutions, and should continue to implement the EBRD's Environmental and Social Procedures for Small and Micro Loans with an Environmental Risk Categorisation List (as revised in 2008) to the MSME sub-loans. Eligibility criteria for sub-loans will need to be reviewed for compliance with the Performance Requirements for Financial Institutions. KMB will adhere to the EBRD's Environmental and Social Exclusion and Referral Lists, and submit annual environmental and social reports to the Bank.
Technical assistance will be provided to aid the set up process for the trade finance unit, covering both establishment of procedures and product design. The facility will support cash advances for funding of domestic factoring and export transactions and for guarantees of import factoring transactions.
Mr Sergey Pchelintsev
Bldg. B, 31 Shabolovka Street
T: 495 967 3060 ext 1645
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