Center-Invest Bank (CIB) Equity Investment II

Location:

Russia

Project number:

36168

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

26 Jul 2005

Status:

Disbursing

PSD disclosed:

21 Jun 2005

Project Description

The operation consists of USD 5.3 million equity investment for subscription to the newly issued shares. Being part of a USD 21 million capital increase, the investment will support development one of the leading private banks in Southern Russia by increasing its capital, strengthening its operations, and enhancing its competitive position in the region. The project will also support the on-going improvements of Center-Invest Bank’s corporate governance and internal systems, which were introduced at the time of EBRD’s initial investment in September 2004, when EBRD acquired 25.23% shareholding in Center-Invest Bank.

Transition Impact

Aimed at the increase of continuing insufficient financial intermediation in the Russian market, the project’s transition impact will be most prominent in the following three areas: (1) supporting development of a leading regional bank and promoting financial intermediation; (2) improving corporate governance and strengthening internal systems of Center-Invest Bank; (3) enhancement of competition in the banking sector – as a result of the project Center-Invest Bank will be able to assert itself as a credible regional competitor to larger Moscow-based and state-owned banks.

The Client

Center-Invest Bank, a Rostov-on-Don based bank, one of the leading financial institution in Southern Russia with excellent knowledge of the local market and focus on small and medium companies financing and retail banking.

EBRD Finance

Equity investment of USD 5.3 million into newly issued ordinary shares.

Project Cost

USD 5.3 million.

Environmental Impact

The client complies with EBRD’s Environmental Procedures for Intermediated Finance through Local Banks, including compliance with applicable national environmental, health and safety requirements, adherence to the Environmental Exclusion and Referral List, submission of annual environmental reports to the Bank and nomination of an officer responsible for environmental issues.

Technical Cooperation

Institutional building consultant to be selected.

Company Contact

Ms. Gregory Chorayan, Member of the Management Board
Bank Center-Invest
62, prospect Sokolova,

Rostov-on-Don, Russia, 344010;

Tel. + 7 8632 675 833
Fax +7 8632 640 640;

E-mail: eurodept@centrinvest.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

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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