Senior Secured Loan for Vostok Finance Group

Location:

Regional

Project number:

44640

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Approval date:

16 Apr 2013

Status:

Complete

PSD disclosed:

15 Mar 2013

Project Description

The EBRD is considering a senior secured loan for Swizza Holding Limited, Cyprus (the “Company” or “VostokFinance Group”).

The EBRD financing will be used to further expand the Company’s business of acquiring and resolving unsecured retail non-performing loans and receivables (“NPL”) from originating financial institutions in Russia and Ukraine as well as potentially Kazakhstan. The EBRD loan proceeds will be down-streamed to the respective countries for eligible NPL purchases.

Transition Impact

The Project will support a leading NPL asset manager to further expand its operations as well as the NPL market in Russia and Ukraine and potentially Kazakhstan. This is expected to have a beneficial impact on financial institutions’ balance sheets, introduce further efficiency in the NPL market and continue setting of standards of reputable and responsible resolution of NPLs in the countries concerned.

The Client

VostokFinance Group is one of the leading NPL asset managers in Russia and Ukraine, focusing on acquisition and resolution of NPLs from originating financial institutions in Russia and Ukraine. The Company considers a business expansion to Kazakhstan.

VostokFinance Group is a member of the National Association of Professional Collection Agencies (NAPCA; Russia) and the Ukrainian Collection Business Association (ACBU; Ukraine) and is regulated by the codes of ethics of these associations, as well as by the Code of Conduct of the Federation of European National Collection Associations (FENCA).

EBRD Finance

Up to USD 10 million multicurrency senior secured loan denominated in USD and RUB.

Project Cost

At least USD 15 million, including financing from other lenders.

Environmental Impact

Categorised FI. The Company's NPL collection procedures are strictly based on the European Code of Conduct for Collection Agencies. The Company will be required to comply with the EBRD's Performance Requirements 2 and submit annual environmental and social reports to the EBRD on the implementation of PR2 and the Code of Conduct.

Technical Cooperation

None.

Company Contact

Andrey Sakhno, Head of Public Relations:
Tel: +380 44 206 3757; Fax: +380 44 275 6388
Mob: +380 50 356 0359
Email: Andrey.Sakhno@vostokfinance.com
www.vostokfinance.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

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