Promsvyazbank Subordinated Loan

Location:

Russia

Project number:

36576

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

29 Nov 2005

Status:

Completed

PSD disclosed:

28 Oct 2005

Project Description

The proposed subordinated loan in the amount of USD 50 million is aimed to support the capital base of the bank in order to underpin continued growth of Promsvyazbank’s regional branch network and increase of the business portfolio, mainly of the SME and retail segment of the market.

Transition Impact

The transition impact of the project is expected to be achieved in two main areas:

  • Subordinated loan will support implementation of Promsvyazbank’s business plan, which envisages diversification of client base through increased regional presence and more focus on SMEs and retail businesses.
     
  • The project seeks to further support the institutional strengthening of Promsvyazbank in line with high standards of business conduct and corporate governance.
     
  • The loan will also further contribute to improve the bank’s ability to secure support from other long term finance providers and attract potential investors.

The Client

Promsvyazbank was established in 1995 as a specialised bank servicing the needs of large companies in the communication sector, however, over time it evolved into a universal bank offering the full range of services in over 20 Russian regions.

EBRD Finance

USD 50.0 million subordinated loan.

Project Cost

USD 50.0 million.

Environmental Impact

Promsvyazbank will be required to continue to comply with EBRD’s Environmental Procedures for Intermediated Finance through local banks, including ensuring compliance with the applicable national environmental, health and safety legislation, adherence with EBRD’s Environmental Exclusion List and submission of annual environmental reports to the Bank.

Technical Cooperation

None.

Company Contact

Ms. Alexandra Volchenko, Head of Rating Support and Financial Institutions International Business Department, Promsvyazbank

Fax: (7 095) 727 1021

E-mail: volchenko@psbank.ru

Web site: www.psbank.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

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