Raiffeisen Bank Subordinated Credit Facility

Location:

Russia

Project number:

11275

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

31 May 2000

Status:

Complete

PSD disclosed:

15 May 2000

Project Description

US$ 20 million subordinated facility to Raiffeisen Bank Moscow to strengthen capitalisation of the bank and to allow it to extend its lending operations without exposure to foreign exchange risk.

The project aims to:

increase supplementary (Tier II) capital of RBR through subordination in order to maintain capital adequacy requirements;

  • support further private sector credit operations and finance anticipated loan growth; and
  • improve the range of products and services offered to clients in order to expand the deposit base of the bank.

Transition Impact

By implementing the facility, the EBRD will enhance the supply of much-needed finance to the local private sector. A secondary benefit is that it will increase competitiveness in the country’s banking system.

The Client

Raiffeisenbank Moscow (RBR) was established in 1997 as a 100 per cent subsidiary of Raiffeisen Zentralbank (Vienna, Austria). RBR is a fully licensed commercial bank with the right to offer to its resident and non-resident clients a complete range of banking products for domestic and cross-border operations in both Russian rouble and foreign currencies. The bank has a special focus on structured trade finance products, tailor made for the complex Russian environment.

EBRD Finance

The loan will be subordinated to other creditors of RBR and will have a maturity of six years. In accordance with the Basle Accord, the loan will be qualified as Tier 2 capital of RBR.

Project Cost

US$ 20 million (€21 million).

Environmental Impact

RBR will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, RBR will require its borrowers to comply, at a minimum, with national /local health, safety, environmental and public consultation requirements.

Technical Cooperation

None.

 

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)

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Text of the PIP

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