Center-Invest Bank Mortgage, Energy Efficiency, SME Facility

Location:

Russia

Project number:

37892

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Approval date:

24 Jul 2007

Status:

Completed

PSD disclosed:

21 Jun 2007

Project Description

The proposed project envisages a syndicated A/B loan to Center-Invest Bank in the total amount of RUB 1 billion with maturity of up to 7 years. RUB 500 million A-Loan will be retained by the EBRD and RUB500 million B-Loan will be syndicated to another financial institutions.

The loan will be used for financing of residential mortgages to individuals, energy efficiency and other projects of local companies and small and medium-sized enterprises in the South of Russia, and will support the bank’s growth strategy through improved funding base.

Transition Impact

The loan will support the development of the mortgage market in Russia and improved access of individuals to housing finance in the South of Russia, promote best mortgage lending standards. The loan will also assist in launching a new EBRD product in Russia – lending for energy efficiency projects, and increase access to mid-term financing for SMEs, corporates and retail customers.

The Client will benefit from diversification and stability of funding, lengthening of maturities and rouble financing. This will increase the bank’s capacity to grow their lending to small and medium-sized companies and retail customers and further strengthen its balance sheet.

The Project will overall enhance Center-Invest’s competitiveness in the region and promote greater access to financial services by businesses and individuals in the South of Russia.

The Client

Center-Invest Bank is a leading regional universal commercial bank based in Rostov-on-Don catering to small and medium-sized businesses and individuals through a wide branch network in the South of Russia.

EBRD Finance

Senior term loan of RUB500 million (EUR16 million) (A-Loan).

B-Loan of RUB500 million (EUR16 million) to be co-financed by a financial institution.

Project Cost

RUB 1billion (EUR32 million).

Environmental Impact

Center-Invest will be required to apply EBRD’s Environmental Procedures for Local Banks to all commercial lending activities including sub-loans financed out of the proceeds of the loan, adhere to the Environmental Procedures for Residential Mortgage Lending to mortgage sub-loans financed out of proceeds of the loan and to submit annual environmental reports to the Bank.

Technical Cooperation

Center-Invest has finalised working with ING Bank as consultants within the framework of Russian Regional Bank Credit Strengthening and Institutional Building Program funded through EU IPF Program.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company Contact

Mr. Grigory 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

 

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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Email: projectenquiries@ebrd.com

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Text of the PIP

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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.