European Pension Fund

Location:

Russia

Project number:

42387

Business sector:

Insurance, Pension, Mutual Funds

Notice type:

Private

Environmental category:

FI

Target board date:

26 Jul 2011

Status:

Completed

PSD disclosed:

24 Jun 2011

Translated version of this PSD: Russian

Project Description

EBRD is considering subscribing to new shares to acquire an equity stake in European Pension Fund (EPF), a pension manager operating in the obligatory private pension fund market, via a Cypriot holding company. EBRD will have a right to participate pro-rata in further planned capital increases.

Transition Impact

The EBRD capital participation will provide a promising private-sector pension fund manager with the means to establish a strong position in the nascent obligatory pension sector. This will foster competition, leading to improved levels of customer service and innovation in the area of investment management and retirement planning.

Moreover, the development of a thriving pension sector will contribute significantly to the Russian capital markets, as the growth of the private pension sector will stimulate demand for more sophisticated, longer-maturity capital market products and services. The investment will support a fund that already demonstrates above-average corporate governance and risk management practices, and the company is committed to further improvements. This will provide a strong demonstration effect for other market participants.

The Client

European Pension Fund is a newly set-up private pension fund devoted to open-market sales in the Russian obligatory pension market.

EBRD Finance

EBRD will provide long term equity financing for European Pension Fund in order to facilitate its development.

Project Cost

The initial investment is for an up to 30% stake in the company. EBRD plans to participate pro-rata.

Environmental Impact

European Pension Fund will be required to comply with EBRD's Performance Requirements 2 and 9 and to adhere to the EBRD's Environmental and Social Exclusion and Referral Lists. Further, the European Pension Fund is obliged to implement EBRD's Environmental and Social Procedures for Passive Investments and to provide to EBRD annual reports on environmental and social matters and the implementation of Performance Requirements 2 and 9.

Technical Cooperation

A technical cooperation assignment will contribute to the establishment of an adequate personal data protection system.

Company Contact

Alexey Bulavin, Managing Director
Tel: +7 495 777 80 20

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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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.