International Moscow Bank - Recapitalisation

Location:

Russia

Project number:

8431

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

25 Jan 2000

Status:

Complete

PSD disclosed:

16 Mar 2001

 

Procurement

There are no open procurement opportunities for this project.

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Email Address

CONTACTS

Mikhail Grechikho, Operations Leader
grechikm@ebrd.com

International Moscow Bank - Recapitalisation (debt & equity)

 
Country: Russia
Project number: 8431
Business sector: Depository Credit Banks
Public/Private: Private
Environmental category: FI
Target Board date: 25 Jan 2000
Status: Completed
PSD disclosed: 16 Mar 2000

 

 

Project Description

Recapitalisation financing for International Moscow Bank, Russia's fourth-largest commercial bank recapitalisation financing in the Russian Federation. The EBRD proposes to finance part of the recapitalisation programme initiated by IMB's major Western shareholders, which is necessary because the Russian financial crisis of 1998 effectively eliminated IMB’s equity. The recapitalisation will allow IMB to comply with the Central Bank of Russia and IAS standards.

Transition Impact

The project will have a significant "demonstration effect" as it is the first internationally led recapitalisation of a Russian bank since the 1998 financial crisis. The project will also increase genuine commercial competition in the Russian banking sector.

The Client

International Moscow Bank (IMB) – a majority Western-owned consortium bank established and operating in Russia, with headquarters in Moscow.

EBRD Finance

US$ 10 million (EUR 10.4 million) of subordinated debt for inclusion into Tier 2 capital and an investment of US$ 5.3 million (EUR 5.5 million) into ordinary shares of IMB, which will make the EBRD a 10% shareholder. Both the equity and subordinated debt might be later shared with another party.

Participation of the EBRD will be a part of and subject to the total recapitalisation of the bank in the amount of US$ 70 million (EUR 72.5 million). IMB’s consortium shareholders structure will be changed as a result of the recapitalisation, with two reputable foreign banks leading the process as major shareholders.

Project Cost

Total project costs are US$ 15.3 million (EUR 15.9 million).

Environmental Impact

The project will not have significant environmental impact since the funds to be provided are not for further on-lending.

Technical Cooperation

None.

 

Business opportunities

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