Transcapitalbank Capital Increase

Location:

Russia

Project number:

42486

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

13 Apr 2011

Status:

Disbursing

PSD disclosed:

15 Mar 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering a participation in capital increases of Transcapitalbank (TCB), a Moscow/ Russian Federation based mid-sized bank, in two tranches with an aggregate EBRD subscription price of up to RUB 1,287,000,000 over two years. The first subscription is scheduled for mid-2011 in the amount of RUB 572 million within EBRD’s pre-emptive rights, EBRD being an existing shareholder. The second subscription in the amount of up to RUB 715 million is scheduled for 2012. In the course of each transaction EBRD will maintain its current stake of 28.6% in TCB’s capital and voting rights.

Transition Impact

The capital increase with EBRD participation will provide TCB, a successful private-sector bank, with a solid capital base to realize its further expansion into the regions outside of Moscow and St. Petersburg, and into the segment of lending to micro, small and medium-sized enterprises (MSME). This will foster competition for lending to MSME in currently 16 regions of TCB’s presence and improve MSMEs’ access to loans.

Moreover, this capital increase will support a bank that already demonstrates above-average corporate governance and is committed to further improving its corporate governance. This is expected to be noticed and subsequently emulated by other market participants and can therefore be assumed to have a strong demonstration effect.

The Client

TCB is the 49th largest bank in Russia by total assets, with a traditional focus on mid-sized corporate clients and MSME, covering 16 regions of Russia and serving almost 200,000 customers. EBRD has been cooperating with TCB since 2003 and became a shareholder in 2006. TCB is to a large degree owned by its management and DEG is also a shareholder in TCB.

EBRD Finance

The aggregate EBRD subscription price amounts to up to RUB 1,287,000,000 over two years.

Project Cost

The aggregate EBRD subscription price amounts to up to RUB 1,287,000,000 over two years.

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

TCB received Technical Cooperation under the Russia Small Business Fund and within the framework of an Institutional Building Plan.

Company Contact

Arvid Tuerkner, Senior Banker, EBRD Moscow Resident Office
E-mail: tuerknea@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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