SME Guarantee Framework

Location:

Russia

Project number:

45349

Business sector:

Notice type:

Private

Environmental category:

FI

Target board date:

25 Jun 2013

Status:

Cancelled

PSD disclosed:

31 May 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering to sign the Deed of Guarantee and Indemnity with VEB to increase its lending capacity to selected Partner Banks (“PB”) for on-lending to predominantly regional MSMEs. The EBRD has existing MSME loans outstanding to the PB’s and the partnership with VEB will allow for further loans to be extended in similar size and under similar terms and conditions.

VEB is a State Corporation of the Russian Federation and a Development Bank committed among other things to supporting micro, small and medium-sized enterprises (“MSME’s”) in the Russian Federation. The first two loans under the VEB guarantee EBRD plans to extend to Center-Invest Bank (CIB) and NBD Bank effectively doubling bi-lateral facilities targeted towards the development of MSME’s. EBRD plans to extend the program further to more PB’s in the future.

The project is aimed at enhancing the availability of longer-term local currency for financing private MSMEs in the Russian regions through the cooperation with VEB.

Transition Impact

The Project will generate transition impact by supporting the real economy via longer-term local currency loans. The Project will increase EBRD’s capacity of lending to MSME’s, particularly in the regions, and further develop this segment of the Russian economy.

In attracting VEB’s participation to the projects, the Project will have a positive demonstration effect. The Project will increase cooperation between EBRD and VEB as development institutions for the benefit of the real sector economy and local MSMEs as its vital part and driving force.

The Client

VEB is a State Corporation of the Russian Federation with a unique status. The legal status and activity of VEB is governed by the Federal Law “On the Bank for Development” (№82 FZ, adopted on May 17, 2007). It acts as a development bank for the Russian economy and is involved in the finance of SME’s and other developmental projects. VEB also acts as an agent for the Russian government in servicing its sovereign debt and managing pension assets. VEB’s mission pays particular attention to supporting high-tech exports, SME’s, PPP’s, projects of national significance and the development of Russia’s industries and regions.

EBRD Finance

Framework of up to EUR 500 mio (RUB 20.5 bln) under VEB guarantees.

Project Cost

RUB 20.5 billion.

Environmental Impact

PB’s will be required to comply with EBRD’s Environmental Procedures for Intermediated Finance through local banks, including ensuring compliance with the applicable national environmental, health and safety legislation, adherence with EBRD’s Environmental Exclusion List and submission of annual environmental reports to the Bank.

Technical Cooperation

None. However, PB’s have already been engaged by TC consultants under existing EBRD MSME credit lines.

Company Contact

Livishin, Denis
Fax: (7 499) 975 2040
E-mail: livishin_ds@veb.ru
Web Site: http://www.veb.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

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