Project Description
An equity investment of US$ 5.5 million in NBD-Bank, Nizhny Novgorod, for the purposes of institutional development and on-lending for private sector enterprises in the Russian Federation. Cancelled following Board approval.
Project objectives:
- Support the institutional development of a regional private sector bank committed to achieving international standards of service and expansion of its activity in the SME sector;
- Contribute to enhancement of the inflow of capital into the Nizhny Novgorod region by transforming NBD-Bank into a financial intermediary acceptable to international investors;
- Enhance NBD-Bank's resources available for medium-term on-lending to local private sector companies.
Transition Impact
The investment will support the growth, development and strengthening of a quality private sector institution and the private sector in general by providing term funds needed for the development of its retail infrastructure and activity in the SME sector.
The Client
NBD-Bank, a regional commercial bank based in Nizhny Novgorod providing retail banking services to individuals and small and medium-sized enterprises (SMEs). As at 30 September 1996 it had net worth totalling US$ 11.2 million and total assets of US$ 59.9 million.
EBRD Finance
The equity investment of ECU 4.3 million equivalent will support NBD-Bank's institutional development and resources needed for further development of the regional retail infrastructure and for an increase in medium-term lending to local productive private sector enterprises or enterprises in the process of privatisation.
Project Cost
US$ 5.5 million (ECU 4.3 million equivalent).
Environmental Impact
C/0: The project does not require an environmental audit. Sub-projects will be financed in accordance with the EBRD's environmental procedures for financial intermediaries. NBD-Bank will report to the EBRD on environmental issues associated with the project.
Technical Cooperation
Technical cooperation has been provided to the bank in the course of equity investment preparation. Additional technical cooperation will be made available via the proposed twinning partnership with a foreign bank under the Financial Institutions Development Project (FIDP).
Company Contact
Business opportunities
For business opportunities or procurement, contact the client company.
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Text of the PIP
