DeltaCredit Bank - Syndicated Loan

Location:

Russia

Project number:

35984

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Approval date:

26 Jul 2005

Status:

Completed

PSD disclosed:

21 Jun 2005

Project Description

The proposed project consist of two facilities:

  • a senior syndicated loan of USD 30 million with an A/B structure, B loan to be syndicated, to DeltaCredit Bank (DCB), the first specialised residential mortgage bank in Russia, for financing its mortgage portfolio. The loan will diversify DCB's funding base and leverage its capital.
     
  • a senior loan of RUB 300 million to DCB. The loan will allow DCB to launch local currency mortgage loans in Russia.

Please refer also to project 36313 .

 

Transition Impact

The Bank’s second round of financing will be a logical continuation of the first round by supporting the Company in mobilising commercial financing for Russian mortgage market and add local currency mortgages to its product portfolio.

The syndicated loan will introduce commercial lenders to the secured loan structure and to the Company in general. This will demonstrate that commercial financing of mortgage receivables is achievable in the Russian market. The rouble loan will enable DCB to launch rouble-denominated mortgage offering. Rouble mortgages of DCB would be the first significant private sector offering of local currency residential mortgage funding in Russia.

The mortgage market is still at an early stage of its development in Russia. DCB is playing a pioneering role in the development of the sector and is introducing best practice standards for the industry. The proposed transactions allows DCB to continue focusing on expansion of its portfolio and through this make mortgage financing available to more Russians.

 

 

The Client

DeltaCredit Bank is the leading mortgage provider in Russia, established by The US-Russia Investment Fund (TUSRIF) in 1999.

EBRD Finance

Syndicated loan: senior term loan of up to USD 30 million, with an A/B structure, B loan to be syndicated.

Rouble loan: senior term loan of RUB 300 million (EUR 8.1 million)

 

Project Cost

USD 40 million.

Environmental Impact

The project has been classified as a financial intermediary (FI). The environmental risks associated with the operation and the potential portfolio are low. DCB will need to comply with EBRD’s Environmental Procedures for the Residential Mortgage Lending.

Technical Cooperation

None.

Company Contact

Serge Ozerov, CFO

e-mail: sozerov@deltacredit.ru

Tel: +7 095 960 3161
Fax: +7 095 960 3162

 

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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