CENTER-INVEST BANK EQUITY INVESTMENT & SME CREDIT LINE

Location:

Russia

Project number:

34640

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

22 Jun 2004

Status:

Repaying

PSD disclosed:

18 May 2004

Project Description

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.

Transition Impact

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.

The Client

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.

EBRD Finance

(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.  

Project Cost

Up to US$ 13.15 million

Environmental Impact

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.

Technical Cooperation

Consultant: ING Consulting
Type of support: Trade finance advisory services
Donor: Government of Netherlands

Company Contact

Ms. Larisa Lutsenko, Deputy Chairman of Management Board
Bank Center-Invest
62 Prospect Sokolova,
Rostov-on-Don, Russia, 344010;
Tel. + 7 8632 674 825
Fax +7 8632 640 640
e-mail:  lutsenko@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

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

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