OEB RSECF EE Loan II (Industrial)

Location:

Russia

Project number:

44538

Business sector:

Notice type:

Private

Environmental category:

FI

Approval date:

26 Nov 2013

Status:

Signed

PSD disclosed:

01 Oct 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering a loan to Orient Express Bank (“OEB”) under the industrial component of EBRD’s RUSEFF. OEB, based in the Russian Far East, became an EBRD partner in 2007. Since 2012, when it joined the RUSEFF, it has successfully disbursed loans to its business clients for investments in energy efficiency. Thanks to OEB’s network, the second largest in Russia, the Project will contribute to improving access to finance for investments in energy efficiency, including in Siberia and the Far East.

Transition Impact

The project will generate transition impact by demonstrating the benefits of energy conservation and promoting the expansion of energy efficiency lending in the energy dependent Russian economy. Moreover, the project is expected to transfer skills and build expertise, both at OEB and at OEB’s borrowers. OEB will continue to build expertise in assessing the risk and creditworthiness of clients for energy efficiency loans, while the enterprises are expected to become more familiar with banks’ requirements for providing energy efficiency loans.

OEB is a leading bank in the Russian Far East and Siberia and its successful participation in the facility will help demonstrate that energy efficiency lending can be an effective banking product, thereby serving as a case for further increasing provision of energy efficiency loans by other banks in Russia.

The Client

OEB was set up in 1991 but embarked on a retail and micro and small enterprise (“MSE”) lending strategy only in 2005. Since then, OEB has evolved into a retail and MSE lender of federal importance, which has among its shareholders “Barings Vostok Capital Partners” and the IFC. In 2012, OEB joined EBRD’s RUSEFF, quickly growing into one of its most important partner banks.

EBRD Finance

Senior loan of RUB 750 million from EBRD. The overall maturity of the loan is three years.

Project Cost

RUB 750 million.

Environmental Impact

Categorised FI. OEB has been satisfactorily applying the EBRD's E&S requirements under existing transactions and will be required to continue to comply with the EBRD's PR2 and PR9. An independent Project Consultant will be in place to ensure that EE and RE sub-projects comply with national EHSL requirements and the EBRD's E&S eligibility criteria. OEB will submit reports to the Bank on the RUSEFF loans and on environment, health and safety and labour issues associated with its operations and portfolio.

Technical Cooperation

Between 2008 and 2011, OEB received TC support, funded by Japan and the Russia Small Business Technical Assistance Special Fund and implemented by EBRD consultants. TC support helped OEB to develop and strengthen internal capacities for MSE lending and expand lending activities to new regions.

Implementation of the RUSEFF Industrial loan is supported by on-going TC provided by GFA Consulting Group GmbH, which is being funded by the EBRD Shareholders Special Fund. TC will be provided for assistance to private sector industrial companies, clients of OEB, for identification and appraisal of potential sub-projects.

Company Contact

Alexander Tsakunov, Director, Corporate Finance
9, Sadovnicheskaya Embankment
115035 Moscow, Russian Federation
Tel.: +7 (495) 780 51 00 ext. 15194

 

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

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Text of the PIP

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