Transcapital Bank - Subordinated Loan

Location:

Russia

Project number:

43014

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

13 Dec 2011

Status:

Complete

PSD disclosed:

21 Dec 2011

Project Description

The EBRD is considering granting a Subordinated Loan of RUB 572 million for inclusion into the capital base of TCB for regulatory CAR.

TCB has successfully grown its loan portfolio to the real economy in 2011 and therefore requires additional capital ahead of the original schedule. The Subordinated Loan is an efficient way to support TCB’s business development and achievement of transition benchmarks. This tier-2 capital will be included in the total capital of the bank allowing it to comply with the imperative Capital Adequacy Ratio (CAR) requirements under Russian Accounting Standards (RAS) while continuing granting loans to its real economy clients.

Transition Impact

The provision of a subordinated loan for inclusion into the capital of TCB strengthens TCB’s capital base and helps if to realize its expansion in the regions ahead of the original business plan, including in the MSME segment. TCB’s good regional coverage, wide client base and commitment to developing MSME lending will facilitate successful expansion of its MSME lending in its regions of operation.

The provision of the subordinated loan, together with continued EBRD’s equity participation in the bank, will also facilitate further improvements in the bank’s corporate governance, setting an example in this field to other banks active in the regions where TCB operates.

The Client

TCB is the 46th largest bank in Russia by total assets, with a traditional focus on mid-sized corporate clients and MSME, operating through 18 branches and 55 outlets covering 18 regions of Russia, serving around 25,000 corporate and more than 200,000 individual customers. TCB is to a large degree (42 %) owned by its management team. TCB has been an EBRD Partner Bank since 2003.

EBRD Finance

Subordinated Loan of RUB 572 million for inclusion into the capital base of TCB for regulatory CAR.

Project Cost

RUB 572 000 000

Environmental Impact

Categorised FI under EBRD's 2008 Environmental and Social Policy.

Through due diligence and reporting on previous projects Transcapitalbank (TCB) has confirmed compliance with the Bank's environmental and social requirements. Transcapitalbank (TCB) has received environmental and social risk management training from the Bank and agreed a corrective Environmental and Social Management Plan (ESMP). This ESMP has been fully implemented by TCB, including the development and implementation of TCB's own environmental and social risk management policy and procedures. TCB is required to continue compliance with EBRD's Performance Requirements 2 and 9 and provide the Bank with annual environmental and social reports.

Technical Cooperation

None.

Company Contact

Alina Pletneva,
Head of international funding department at Transcapitalbank
Tel.: +7(495) 797-32-00
E-mail:shilova@transcapital.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

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