Rosevrobank Equity Investment

Location:

Russia

Project number:

41882

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

01 Jun 2011

Status:

Complete

PSD disclosed:

09 Jun 2011

Translated version of this PSD: Russian

Project Description

EBRD Board of Directors approved an equity investment for 11% stake and voting rights in Rosevrobank (REB), an existing partner bank of EBRD in Russia. The investment will be made via a combination of subscription to newly issued shares and partial acquisition of existing ordinary shares.

The investment will support this strong medium sized private bank with a proven track record allowing it to optimise its capital base, facilitate institutional developments and achieve a positive demonstration effect in the market.

Transition Impact

The proposed equity investment will allow REB to:

  • further strengthen its capital platform for business growth and expansion of SME lending in particular
  • further improve its corporate governance with a help of EBRD representation at the Board;
  • increase its market visibility, thus achieving a positive demonstration effect.

The Client

REB is a medium sized private bank with a clear strategy focused on SMEs. It is ranked 54 among the Russian banks by asset size as of end-2010. Headquartered in Moscow and with a network of 38 offices, REB is present in 20 regions and 6 Federal Districts. REB is 84% owned by a group of Russian individuals with remaining stake owned by the institutional investors, DEG and Renaissance Investment Management.

EBRD Finance

Equity: 11% of capital and voting rights after completion.

Project Cost

N/A

Environmental Impact

Categorised FI in line with EBRD’s 2008 Environmental and Social Policy.

REB is an existing client of EBRD and has been implementing EBRD's environmental requirements well under its previous transactions, with past environmental performance and reporting being satisfactory. REB has also already received EBRD's environmental and social risk management training on the 2008 E&S Policy and Performance Requirements (PRs). An Environmental and Social Management Plan (ESMP) has been prepared for REB in 2009 which included specific corrective actions to achieve compliance with PRs.

REB will be required to implement the actions included in this ESMP and comply with the EBRD's Performance Requirements for FIs (PR2 and PR9). This includes adoption of the EBRD's E&S Procedures for Corporate Lending to all REB's commercial lending operations from the time EBRD becomes a shareholder, adherence to the EBRD's Environmental and Social Exclusion and Referral Lists, revision of the existing REB’s Environmental and Social Risk Management Procedures to address risks associated with high and medium risk lending, and submission of annual environmental and social reports to the EBRD.

Technical Cooperation

None.

Company Contact

Mr Yan Lyuter, Deputy Chairman of the Management Board

E-mail: Yan.Lyuter@roseurobank.ru

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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