RSBF - Orient Express Bank MSME loan II

Location:

Russia

Project number:

43736

Business sector:

Notice type:

Private

Environmental category:

FI

Approval date:

26 Nov 2012

Status:

Signed

PSD disclosed:

22 Oct 2012

 

Translated version of this PSD: Russian

Project Description

The Project entails a loan to Orient Express Bank (“OEB”) under EBRD’s “Russia Small Business Fund” (“RSBF”) micro and small enterprise (“MSE”) lending program. OEB with its corporate headquarters in Khabarovsk (Russian Far East) has since 2007, when it became an EBRD partner bank, evolved into one of the largest MSE lenders in Russia. Thanks to OEB’s network of outlets, the largest among any private sector bank in Russia by the Central Bank of Russia’s count, and its geographic outreach, encompassing all eight Federal Districts of the Russian Federation, the Project will contribute to improving MSEs’ access to finance, in particular in underbanked regions in Siberia and the Russian Far East.

Transition Impact

The project, through providing access to finance to MSE, including in remote regions, will foster private-sector development across all Federal Districts of the Russian Federation, including the North-Caucasus Federal District. Thereby the Project will contribute to market expansion for MSE lending, enhance competition in smaller towns where OEB is sometimes the only significant alternative to state-controlled lenders, and help demonstrate to other lenders the economic sustainability of a highly efficient approach to MSE lending.

The Client

OEB was set up in 1991 but embarked on a retail and MSE lending strategy only in 2007. OEB’s MSE lending department was set up the same year, under guidance and with technical co-operation (“TC”) support from EBRD’s RSBF. Since then, OEB has evolved into a retail and MSE lender of federal importance, which has among its shareholders “Barings Vostok Capital Partners” (where EBRD is invested) and the IFC.

EBRD Finance

Senior loan of RUB 1.68 bn from EBRD, with another RUB 0.02 bn co-financed by the “Russia Small Business Investment Special Fund”. The overall maturity of the loan is three years.

Project Cost

RUB 1.7 bn.

Environmental Impact

Categorised FI. Orient Express bank (OEB) has been satisfactorily applying the EBRD's E&S requirements under existing transactions and will be required to continue to comply with the EBRD's PR2 and PR9. OEB will submit reports to the Bank on the RSBF and RSECF loans and on environment, health and safety and labour issues associated with its operations and portfolio.

Technical Cooperation

Between 2008 and 2011, OEB received TC support, funded by Japan and the Russia Small Business Technical Assistance Special Fund and implemented by EBRD consultants.

TC support helped OEB to develop and strengthen internal capacities for MSE lending and expand lending activities to new regions.

Company Contact

Alexander Tsakunov, Head of project group
Corporate Finance
9, Sadovnicheskaya Embankment
115035 Moscow, Russian Federation

Tel.: +7 (495) 780 51 00 ext. 15194

 

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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