RSB Securitisation

Location:

Russia

Project number:

36535

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Target board date:

13 Dec 2005

Status:

Completed

PSD disclosed:

11 Nov 2005

Project Description

Part I of the proposed project would refinance consumer loans originated by Russian Standard Bank, thereby freeing up capital to make new consumer loans in Russia. EBRD would subscribe to bonds issued against a securitised portfolio of Russian Standard Bank’s consumer loans. Part II of the proposed project is a rouble-denominated senior term loan to Russian Standard Bank of USD 30 million equivalent, to be used for making new consumer loans in Russia. Russian Standard Bank is the leading consumer finance bank in Russia and has a strong commitment to making consumer finance available in the regions of Russia, where it now originates over 80% of its new loans.

Transition Impact

Securitisation is an important source of refinancing; the proposed project would be one of the first securitisations in countries of the Bank’s operation and would accelerate the development of the Russian capital markets by introducing a new asset class. It would also make consumer financing more readily available, particularly in the regions, thereby enabling Russian consumers to acquire consumer goods more easily and contributing to increased demand and economic growth.

The Client

JSC Russian Standard Bank, the leading consumer finance bank in Russia.

EBRD Finance

In Part I of the proposed project, EBRD will invest in mezzanine bonds denominated in Euro and securitised by a portfolio of consumer loans originated by Russian Standard Bank. The transaction structure envisages the issuance of approximately EUR 25 million in mezzanine bonds with EBRD subscribing to approximately 35% (EUR 8.5 million) and the Originator and/or international or commercial financial institutions subscribing to the difference. Part II of the proposed project, EBRD will provide to Russian Standard Bank a bi-lateral senior term loan facility of USD 30 million equivalent denominated in roubles.

Project Cost

Part I: Approximately EUR 25 million; Part II: USD 30 million equivalent denominated in roubles.

 

Environmental Impact

The environmental issues associated with consumer financing are extremely limited and hence Russian Standard Bank will not be required to implement the Bank's financial intermediary environmental procedures for this operation.

Technical Cooperation

None.

Company Contact

Andre Spark, EBRD.

Email: sparka@ebrd.com

 

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

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