Bank Saint-Petersburg Subordinated Loan

Location:

Russia

Project number:

40120

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

03 Jun 2009

Status:

Completed

PSD disclosed:

05 Jun 2009

Project Description

The proposed project will support capitalisation of a strong regional bank in the North-West Federal District of Russia, the largest private bank in the region and an EBRD partner since 2006. The EBRD will provide Tier 2 capital to BSP in the form of a subordinated loan.

Transition Impact

The project will demonstrate EBRD’s support to a leading regional bank which has an important role in supporting the real economy in the North-West Federal District of Russia. BSP is committed to high standards of corporate governance and good business practices and is well-placed to emerge from the current financial crisis with a foundation for future growth. EBRD’s loan will demonstrate support for the bank’s future and help to underpin confidence in BSP among its clients and investors.

The Client

Bank Saint-Petersburg is the largest private bank in the North-West Federal District of Russia, with the most of its business focussed on the Saint-Petersburg region. BSP is 56.89% owned by the management, 22.95% is a free float and the rest is owned by smaller shareholders. BSP has a strong market position; at the end-2008, BSP ranked the 17th bank by assets and 12th by retail deposits among all Russian banks. As of the end-2008 BSP had USD 7.3 billion in total assets and USD 638 million in equity.

The bank has developed branch network of 33 branches and points of sale including a branch and an outlet in Moscow, branches in Kaliningrad and Nizhniy Novgorod. The share of BSP in the Saint-Petersburg region market at end-2008 was 11.9% by assets, 12.9% by loan portfolio and 11.9% by customer deposits putting it in the third place after Sberbank and VTB Severo-Zapad (VTB SZ).

EBRD Finance

EBRD will provide BSP with a Subordinated loan of USD 75 million.

Project Cost

The proposed direct financing includes upper Tier 2 capital in the form of a subordinated loan of USD 75 million.

Environmental Impact

BSP, an existing client, will be required to apply across the full range of its business activities, the Environmental Procedures adopted by BSP on the occasion of EBRD's earlier investments, which are in line with PR9 of the EBRD's 2008 Environment and Social Policy. BSP will be required to adhere to the EBRD's Environmental and Social Exclusion and Referral Lists, and submit annual environmental and social reports to the Bank.

Technical Cooperation

None.

Company Contact

Mr Konstantin Noskov
International Finance & Financial Institutions Director
Bank Saint Petersburg
178, Nevsky Prospekt,
191167 St. Petersburg, Russia
ph.: + 7 812 332 77 27
fax: + 7 812 332 77 26
E-mail: noskov@bspb.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

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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