MDM Bank Diversified Payments Rights Securitisation

Location:

Russia

Project number:

42333

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Status:

Cancelled

PSD disclosed:

18 Apr 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering lending up to USD 50 million as part of MDM Bank’s new diversified payment rights (“DPR”) securitisation programme.

With a targeted total issuance of up to USD 150 million alongside other lenders, EBRD’s support for MDM Bank’s DPR securitisation programme will facilitate the post-crisis re-introduction of structured finance instruments to Russian issuers.
EBRD’s finance will also support further lending to the real economy via MDM Bank on-lending the EBRD proceeds to its mid-tier corporate clients in Russia.

Transition Impact

EBRD’s participation in this transaction will support the re-introduction of structured finance products to the Russian market.
EBRD’s finance will also support mid-tier corporate lending in Russia with medium- to long-term finance currently not widely available to Russian banks.

The Client

MDM Bank is the 2nd largest privately-owned bank in Russia by equity, and the 7th, 8th and 10th largest Russian bank by retail loans, retail deposits and corporate loans, respectively. It has also been an active issuer of structured finance products in the past with DPR and auto-loan securitisation programmes.

EBRD Finance

USD 50 million loan with a five-year legal final tenor as part of a new DPR securitisation programme for MDM Bank. West LB will act as the arranger and will co-finance USD 50 million with the same tenor, while an additional USD 50 million will be sought from third party lenders.

Project Cost

Up to USD 150 million.

Environmental Impact

MDM Bank will be required to continue to comply with PR2 and apply PR9 to all its lending and investment activities. MDM Bank will also be required to submit annual reports on environmental and social matters and its compliance with PR 2 & 9 to the Bank.

Technical Cooperation

None.

Company Contact

Mr Tengiz Kaladze
Managing Director, Managing Director, Head of Syndications and Structured Finance
Tel: +7 495 745 9640
Email: Tengiz.Kaladze@mdmbank.com

 

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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