Bank Saint Petersburg - Equity Investment

Location:

Russia

Project number:

42479

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

01 Jun 2011

Status:

Disbursing

PSD disclosed:

08 Jun 2011

Translated version of this PSD: Russian

Project Description

The EBRD’s Board of Directors has approved an equity investment involving the purchase of newly issued ordinary voting shares of BSP representing after subscription around 6.1% of the bank’s capital and voting rights (around 5.0% after conversion of BSP’s existing preference shares in 2013).

The project will improve the quality of BSP’s capital by replacing tier-2 subordinated debt with equity and will support the largest and the strongest privately-owned market-player in the region.

BSP’s majority shareholders see the major value of attracting the EBRD as an equity investor in the Bank’s potential contribution to strengthening corporate governance and further institutional development.

Transition Impact

The equity investment will increase t BSP’s ability to provide MSMEs with longer maturity loans. The project aims to improve the competitiveness of BSP and the Russian private banking sector overall vis-à-vis state-owned banks.

The EBRD will be able to exercise an effective role in the corporate governance of the bank through its nominee director on the Supervisory Board of BSP.

The Client

BSP is a listed bank and an existing client of the EBRD that has established a positive track record both before and during the crisis in its home region of the North West Federal District (NWFD) of Russia where it is the largest private bank.

At April 1, 2011, BSP was the 16th bank in Russia by assets. As at June 1, 2011, the bank is controlled by management (56.43%), the free float represents 25.54% of the shares and 18.03% belong to significant minorities.

EBRD Finance

Equity investment into newly issued ordinary voting shares of BSP, representing after subscription around 6.1% of capital and voting rights (around 5.0% after conversion of BSP’s existing preference shares in 2013).

Project Cost

N/A

Environmental Impact

Categorised FI: BSP is required to comply with EBRD’s Performance Requirements 2 and 9 and implement the EBRD’s Environmental and Social Procedures for Corporate Lending across its entire portfolio. BSP is required to submit annual environment and social reports to the Bank..

Technical Cooperation

None.

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

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