BANQUE SOCIETE GENERALE VOSTOK LEASING - LEASING LOAN

Location:

Russia

Project number:

34804

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Approval date:

06 Apr 2004

Status:

Completed

PSD disclosed:

27 Jan 2004

Project Description

The proposed project consists of three senior debt facilities to SG Group-owned banking and leasing operations in Russia, as follows:
  • Senior Term Loan - to Banque Société Générale Vostok (BSGV) for on-lending to Russian private companies and to individuals as retail loans;
  • Mortgage Loan - to finance BSGV's loans for residential mortgages;
  • Leasing Loan - to BSGV Leasing (BSGVL) for financing its leases to Russian private companies.

The main objective of the project is to support SG Group's strategic expansion in Russia by:
  • Providing long-term debt facilities to BSGV and BSGVL helping them to grow their operations with Russian corporate customers and retail clients;
  • Helping to diversify SG Group's Russian subsidiaries' funding base and improve their asset liability structure by providing direct long term debt finance;
  • Assisting SG Group in approaching the commercial debt market with Russian assets by taking the lead in syndication of the Loans.

Transition Impact

Considering the low banking sector intermediation level in Russia where the domestic credit to enterprises ratio to GDP stood at 18% at the end of 2002, and the dominant position of state owned banks in the market, the Project is expected to have a positive impact on the country's economic development by providing customer access to medium and long term finance and on the development of the banking sector through supporting the expansion of banking institutions which apply best banking practice in their operations and are in the forefront of product development.
This will be the first syndicated loan led by the EBRD for a financial institution in Russia attracting new investors to the Russian banking market.

The Client

  • BSGV - the borrower of the Senior Term and Mortgage Loans.
  • BSGVL - the borrower of the Leasing Loan.
 
BSGV was established in April 1993 as a fully owned Russian subsidiary of SG Group. BSGV is a universal commercial bank providing corporate and retail banking services. BSGVL is a 100%-owned leasing subsidiary of BSGV established in June 2003 with the focus to provide lease financing to BSGV's existing and new clients.
SG Group is the third largest banking group by total assets in France. SG Group is rated Aa3 by Moody's and AA- by S&P with a stable outlook.

EBRD Finance

Senior debt for on-lending to private sector in the aggregate amount of up to USD 125 million consisting of the following:
  • Senior Term Loan of up to US$ 75 million, with an A/B loan structure, B loan to be syndicated;
  • Leasing Loan of up to US$ 25 million, with an A/B loan structure, B loan to be syndicated;
  • Mortgage Loan of between US$ 20 to 25 million, which may be syndicated.
 

Project Cost

US$ 125 million.

Environmental Impact

BSGV and BSGVL are required to apply the Bank's environmental procedures for local banks, leasing or mortgage lending, depending on the facility. In implementing these procedures, BSGV and BSGVL will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

Technical Cooperation

None.

Company Contact

Mr. Michel Bricout
Chairman and Managing Director

E-mail: michel.bricout@socgen.com
Mr. Jean-Francois Myard
Deputy Managing Director
E-mail: jean-francois.myard@socgen.com
Banque Société Générale Vostok
2 Yakimanskaya Naberezhnaya
Moscow, 119180 Russia
 

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.

Share this page: