INTERNATIONAL MOSCOW BANK CAPITAL INCREASE

Location:

Russia

Project number:

35434

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

30 Nov 2004

Status:

Completed

PSD disclosed:

25 Oct 2004

Project Description

The proposed project envisages EBRD’s subscribing to RUR 292,516,620 worth of preference shares (equivalent to US$ 10 million at the current exchange rate of 29.1 RUR/US$). The project is aimed at strengthening IMB Tier 1 capital to support the organic growth of the bank’s business.

Transition Impact

The project will provide IMB with Tier 1 capital and financial resources needed for implementation of the medium-term strategy of IMB to develop core banking business and in particular lending to private sector SME clients and retail banking. Via IMB the EBRD aims to foster competition and financial intermediation in the Russian banking sector, as well as support best banking practices adopted by IMB.
The structure of the proposed capital increase, with EBRD’s subscribing for preference shares rather than ordinary shares, will allow HVB and Nordea to consolidate over 75% of voting shares in IMB, thus streamlining the ownership structure in IMB. It also introduces a new investment product (preferred shares) for other minority shareholders not previously offered.
 

The Client

IMB was founded in 1989 and has emerged as the one of the leading private banks in Russia with reputable shareholders and excellent local reputation. In the aftermath of the 1998 financial crisis in Russia the bank was recapitalised by its shareholders, and in 2001 it merged with Bank Austria Creditanstalt’s subsidiary in Moscow.
IMB has a ‘B+/Stable’ rating by Standard & Poor’s and ‘BB-/Positive’ by Fitch. Fitch would expect IMB’s long-term rating to increase to ‘BB+’, once the share capital increase has taken place and the anticipated changes in shareholder structure are complete.
 

EBRD Finance

Equity investment of the US$ 10 million equivalent.

Project Cost

US$ 10 million equivalent.

Environmental Impact

IMB has demonstrated full compliance with applicable environmental requirements of the Bank within the existing operations. IMB will be required to continue to comply with EBRD’s Environmental Procedures for Intermediated Financing through Local Banks.

Technical Cooperation

None.

Company Contact

Denis Plenkin
Head of Department, Financial Institutions Division
9, Prechistenskaya Emb
Moscow
Russia
Tel: +7-095 258-6587
Fax:+7-095 258-7272
E-mail: DPlenkin@imbank.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

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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