RSB Securitisation

Location:

Russia

Project number:

36535

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Approval 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

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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