MDM Bank Syndicated Loan

Location:

Russia

Project number:

36789

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

03 Oct 2006

Status:

Completed

PSD disclosed:

18 Aug 2006

Project Description

MDM-bank (MDM) is planning to raise a senior A/B loan of USD 225 million, of which USD 75 million (A loan) will be the EBRD portion and USD 150 million (B loan) will be syndicated to commercial banks.

The project aims to support the bank in refocusing its business towards retail banking and private sector Micro, Small and Medium Size Enterprises (MSME). It will assist MDM in raising a syndicated loan of longer maturity than achieved to date by the bank.

Transition Impact

  • The proposed project will promote financial intermediation in Russia by using the broad regional network of MDM to reach Russian MSME and retail customers with longer tenor funding.
  • The proposed project is expected to foster competition in the banking sector by giving borrowers in different regions across Russia greater choice in accessing banking products which best fit their needs.
  • EBRD’s involvement in the syndicated loan transaction will further enhance the bank’s image with its potential lenders and facilitate MDM’s access to longer-term commercial funding.

The Client

MDM is one of the leading Russian private banks, based in Moscow with an extensive regional network throughout Russia. MDM operates as a fully-fledged universal bank and provides a wide range of services to corporates and individuals.

EBRD Finance

Term Loan of USD 75 million (EUR 58 million).

Project Cost

USD 225 million (EUR 175 million).

Environmental Impact

MDM will be required to comply with EBRD’s Environmental Procedures for Intermediated Financing through Local Banks, including adherence to the Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety legislation, and submission of annual environmental reports to EBRD.

Technical Cooperation

None.

Company Contact

Mr. Evan Boiko, Head of Investor Relations
Email: Evan.Boiko@mdmbank.com

Tel: +7 495 221 3075
Fax: +7 495 221 3076

 

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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