Orient Express Mortgage Credit line

Location:

Russia

Project number:

37553

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

03 Dec 2007

Status:

Complete

PSD disclosed:

02 Nov 2007

Project Description

The proposed project will consist in a seven year mortgage loan and a five year Micro and Small Enterprise loan under the Russian Small Business framework in Roubles and is aimed at assisting Vostochny Express Bank in the implementation of its strategy to diversify its product offering and to boost its operations in the mortgage and MSME business segments.

Transition Impact

The transition impact potential arises from supporting the development of mortgage and MSME lending and considerably extending the available maturities of such loans for prospective retail and small business clients in the Russian Far Eastern and Eastern Siberian Regions by providing long-term funds in Roubles while the availability of long-term rouble financing remains very limited. By granting financing to Vostochny Express Bank for on-lending for mortgage loans, the Bank will provide private individuals with an opportunity to improve their housing conditions and will thus support government efforts to encourage home-ownership on a national basis. Vostochny Express Bank’s participation in the RSBF project will further boost transition impact by significantly increasing the RSBF micro and small enterprise lending programme’s outreach to cover a large number of locations where RSBF currently has very limited presence.

The Client

Vostochny Express Bank was established in 1991 in the city of Blagoveschensk in the Amur region of the Russian Far East. Today Vostochny Express Bank is among the leading retail-oriented banks in the Russian Far East and Eastern Siberian federal districts and is pursuing a dynamic expansion strategy in its core retail and MSME business segments through the second largest branch network in the above federal districts after that of Sberbank’s.

EBRD Finance

Up to RUB 750 million in two loan facilities.

Project Cost

Up to RUB 750 million.

Environmental Impact

Screened FI. Vostochny Express is required to comply with the EBRD’s Environmental Procedures for Residential Mortgage Lending and for Small and Micro Lending and to incorporate these into its own credit procedures. This will include, inter alia, compliance with Russian national environmental, health, safety and labour regulations and standards, adherence to the EBRD’s Environmental Exclusion and Referral List for Financial Institutions, and submission of annual environmental reports to the EBRD.

Technical Cooperation

Technical Cooperation funding will be provided i) under the Russian Regional Bank Institutional Building Programme to support VEB in setting up and developing mortgage lending operations, funded by the EC, and ii) under the RSBF Expansion to the Far Eastern Region project, funded by the Japanese Government.

Company Contact

Alexey V. Astakhov
22,Frunze Str., Khabarovsk, 680000
Tel: + 7 4212 48-57-31
Fax: + 7 4212 75-55-63
E-mail: kazna@dvtb.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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