URALTRANSBANK FOR SME

Location:

Russia

Project number:

34579

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Approval date:

23 Mar 2004

Status:

Completed

PSD disclosed:

28 Jan 2004

Project Description

The proposed project envisages an equity investment in Uraltransbank to acquire 25% of voting rights plus one vote, and provision of term financing. The equity investment aims at increasing Uraltransbank's capital base to support its growth with particular focus on lending to private sector small and medium enterprises (SME), project finance and retail banking in the Urals region. Uraltransbank's capital will be leveraged with a term loan for on-lending to SME.

Transition Impact

The project will promote financial intermediation and competition in the banking sector through its support of the private regional bank that is committed to high standards of transparency in operations and corporate governance.
EBRD participation in Uraltransbank may set an example for other regional banks that a well-managed private bank can compete successfully in its market niche with state banks and banks which are members of industrial-financial groups.
By setting standards for corporate governance and business conduct, the project is believed to facilitate transformation of Uraltransbank into a transparent financial institution with sound banking principles.

The Client

Uraltransbank (UTB), a regional bank headquartered in Ekaterinburg, the capital of a large and economically important Urals Federal District, which provides a wide range of banking services to legal entities and individuals. Uraltransbank operates via 11 branches and occupies a strong position in the Urals region with a local market share of approximately 9%.

EBRD Finance

Equity investment of US$ 8 million by means of subscription to newly issued ordinary shares, and term loan of US$ 3 million.

Project Cost

US$ 11 million.

Environmental Impact

Uraltransbank will be required to comply with EBRD's Environmental Procedures for Intermediated Financing through Local Banks, including adherence to the Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety legislation, and submission of annual environmental reports to EBRD.

Technical Cooperation

None.

Company Contact

Mr. Valery Zavodov, Chairman of the Management Board
e-mail: zavodov@utb.ru
telephone: +7 3432 53 03 90; +7 3432 70 15 57
fax: +7 3432 70 19 33
 

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.

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