Transcapitalbank Residential RSECF EE Loan

Location:

Russia

Project number:

44533

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

16 Oct 2013

Status:

Complete

PSD disclosed:

13 Sep 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering a loan to Transcapitalbank (TCB) under the residential component of EBRD’s “Russian Sustainable Energy Financing Facility” (“RSECF”). TCB, based in Moscow, became an EBRD partner in 2004. Due to TCB’s strong presence in the regions of Russia the Project will contribute to improving household’s and private sector enterprises’ access to finance for investments in energy efficiency.

Transition Impact

The project will generate transition impact through its demonstration effect by kick-starting bank lending for energy efficiency improvements in residential buildings. It will support the development of a practically non-existent market for residential energy efficiency loans and demonstrate its social and economic benefits. Moreover, the implementation of this project by TCB will demonstrate to Russian commercial banks the market potential in the sector.

In addition to the Demonstration Effect, the project will also contribute to the Transfer of Skills. Dedicated technical assistance (“TC”) will help TCB with designing products and setting up procedures. On the level of sub-borrowers, a comprehensive package of technical assistance will address information asymmetries as well as capacity constraints. TCB’s clients - sub-borrowers - will become more familiar with energy efficiency opportunities in the residential sector, the requirements of financial institutions for providing commercial financing and how to better structure loan applications.

The Client

TCB is the 41th largest bank in Russia by total assets, operating through 78 outlets covering 19 regions of Russia with assets of USD 3.9 bln. and equity of USD 460 mln. as of 1 April 2013.

The bank’s shareholders include the local sponsors, EBRD, DEG, IFC and other small shareholders. The bank is B1 rated by Moody’s.

EBRD Finance

Senior loan of RUB 750 million.

Project Cost

RUB 750 million.

Environmental Impact

Categorised FI. TCB 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. TCB will submit reports to the Bank on the RSECF loans and on environment, health and safety and labour issues associated with its operations and portfolio.

Technical Cooperation

TCB will receive comprehensive TC support for implementation of the RSECF Residential, provided by Kommunalkredit Public Consulting GmbH, funded by the Austrian Ministry of Finance. The technical consultants will support TCB with establishing internal procedures and the launch of the residential energy efficiency product across TCB’s branch network. Furthermore, the consultant will provide advisory services to Russian homeowners on the selection of best available technologies, project preparation, current energy efficiency standards for buildings and the existing regulatory framework.

Company Contact

Marina Emelyanova
Senior Manager, International Finance Unit
International Business Division
Tel.: +7 (495) 797 32 00 ext. 19 13

 

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

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.