The proposed project comprises an equity investment for subscription of up to US$ 8.15 million to the newly issued shares and 5-year US$ 5 million senior loan for small and medium companies lending. The operation will support the development of one of the leading private banks in Southern Russia by increasing its capital and strengthening its operations, growing its small and medium loans portfolio and enhancing its competitive position in the region. The project will also contribute to the improvement of Center-Invest Bank’s corporate governance and internal systems.
The proposes project is aimed at contributing to the increase of still insufficient financial intermediation in the Russian market. The project’s transition impact will be most prominent in the following four areas:
(1) 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
(2) Strengthening of small and medium companies development by promoting financial intermediation
(3) setting standards for corporate governance
(4) development of institutional efficiency, transfer and dispersion of skills. The EBRD investment will require implementation of the best international practice in corporate governance, bank operations and internal procedures.
Center-Invest Bank, a bank based in Rostov-on-Don, one of the leading financial institutions in Southern Russia with an excellent knowledge of the local market focussed on small and medium companies financing and retail banking.
(a) Equity investment of up to US$ 8.15 million into newly issued ordinary shares
(b) Five-year US$ 5 million senior loan for further on-lending to small and medium companies.
Up to US$ 13.15 million
The client will be required to comply with EBRD’s Environmental Procedures for Intermediated Finance through local banks. These include
ensuring 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 a member of CIB senior management to be responsible for environmental issues.
Consultant: ING Consulting
Type of support: Trade finance advisory services
Donor: Government of Netherlands
Ms. Larisa Lutsenko, Deputy Chairman of Management Board
62 Prospect Sokolova,
Rostov-on-Don, Russia, 344010;
Tel. + 7 8632 674 825
Fax +7 8632 640 640
For business opportunities or procurement, contact the client company.
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Text of the PIP