RUSSKIY STANDARD BANK TERM LOAN AND EQUITY-LINKED OPTION

Location:

Russia

Project number:

20218

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Approval date:

23 Jul 2002

Status:

Completed

PSD disclosed:

28 Jun 2002

Project Description

Proposed term loan and equity-linked option for Russian Standard Bank, the first Russian commercial bank specialising in consumer financing.
The EBRD proposes to provide term financing to RSB to facilitate development of its consumer loans portfolio. The loan will diversify RSB’s funding and leverage its strong capital base.
Equity financing will strengthen RSB’s capital base in the future and support further development, including regional expansion, of RSB’s assets and consumer financing operations.

Transition Impact

The project will have a significant transitional impact as it will support development of the (1) transparent privately-owned commercial bank with dynamic and innovative management, (2) young and fast growing business with intelligent strategy supported by the international expertise and (3) competition and proper operational practices in the consumer financing market segment, which is new to Russia.

The Client

Russian Standard Bank (RSB) – privately owned and the first Russian commercial bank with a strategic focus on consumer financing. Headquartered in Moscow.

EBRD Finance

US$ 10 million (€10.5 million) term loan for financing development of RSB’s consumer loans portfolio. Equity option to purchase up to 10.44 per cent of RSB’s capital. Equity financing will finance further development of RSB’s consumer financing operation.

Project Cost

Total project costs are up to US$ 20 million (€21 million).

Environmental Impact

The environmental impact from the project will be low as the borrower is committed to comply with the financing restrictions stated on EBRD’s Environmental Exclusion List for Financial Institutions as well as with EBRD’s Environmental procedures for Intermediate Financing through Local Banks.

Technical Cooperation

None.

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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