Bank Kedr - Equity Investment

Location:

Russia

Project number:

36424

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

31 May 2006

Status:

Completed

PSD disclosed:

12 Apr 2006

Project Description

The proposed project envisages that the EBRD will acquire a shareholding stake of up to 25% plus one share in Bank Kedr through the acquisition of the newly issued shares of Bank Kedr in the third quarter of 2006. The EBRD’s equity investment will allow Bank Kedr to continue developing its growing SME business and expanding geographically.

Transition Impact

Improving financial intermediation in the Russian regions is one of the key transition impact objectives of the EBRD in Russia. The proposed transaction will provide equity capital to Bank Kedr, a bank that has a strong local reputation and wide regional branch network, and thus will contribute to increasing the availability of financial services in Krasnoyarsk region and other regions, where Bank Kedr operates. The EBRD will seek to support Bank Kedr in strengthening its institutional capacity and enhancing corporate governance.

The Client

Bank Kedr is a regional Russian bank with headquarters in Krasnoyarsk. Bank Kedr is a leading private commercial bank in Krasnoyarsk region with a network of over 40 branches and offices covering the entire territory of the large Krasnoyarsk region.

EBRD Finance

Equity investment. The EBRD will acquire Bank Kedr’s newly issued shares.

Project Cost

Up to USD 12 million.

Environmental Impact

Bank Kedr will be required to apply EBRD’s Environmental Procedures for Local Banks to all commercial lending activities including sub-loans financed through the SME Credit Line, and to submit annual environmental reports to the Bank.

Technical Cooperation

None.

Company Contact

Mr. Mikhail Stavitsky
Deputy Chairman of the Management Board
Bank Kedr
Krasnoyarsk 660021, 33 Vokzalnaya str.

Tel. +7 3912 65 09 37
Fax +7 3912 65 09 23

 

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