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$). The project is aimed at strengthening IMB Tier 1 capital to support the organic growth of the bank’s business.
The project will provide IMB with Tier 1 capital and financial resources needed for implementation of the medium-term strategy of IMB to develop core banking business and in particular lending to private sector SME clients and retail banking. Via IMB the EBRD aims to foster competition and financial intermediation in the Russian banking sector, as well as support best banking practices adopted by IMB.
The structure of the proposed capital increase, with EBRD’s subscribing for preference shares rather than ordinary shares, will allow HVB and Nordea to consolidate over 75% of voting shares in IMB, thus streamlining the ownership structure in IMB. It also introduces a new investment product (preferred shares) for other minority shareholders not previously offered.
IMB was founded in 1989 and has emerged as the one of the leading private banks in Russia with reputable shareholders and excellent local reputation. In the aftermath of the 1998 financial crisis in Russia the bank was recapitalised by its shareholders, and in 2001 it merged with Bank Austria Creditanstalt’s subsidiary in Moscow.
IMB has a ‘B+/Stable’ rating by Standard & Poor’s and ‘BB-/Positive’ by Fitch. Fitch would expect IMB’s long-term rating to increase to ‘BB+’, once the share capital increase has taken place and the anticipated changes in shareholder structure are complete.
Equity investment of the US$ 10 million equivalent.
US$ 10 million equivalent.
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.
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