VTB 24 - Senior Loan II

Location:

Russia

Project number:

40107

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

25 Mar 2009

Status:

Complete

PSD disclosed:

09 Feb 2009

Project Description

The EBRD is considering provision of senior debt to VTB-24 for on-lending to private micro and small enterprises in underserved regions of the Russian Federation.
The proposed debt funding will allow VTB-24 to meet the continued demand from Russian micro, small and medium-sized enterprises (MSMEs) for financing, a sector which has suffered considerable contraction as a result of the ongoing difficult market conditions and liquidity constraints in the Russian Federation.

Transition Impact

Transition impact of this project will be achieved through the provision of funding to MSMEs which continue to be underserved particularly in view of the financial crisis. VTB-24’s extensive branch network will further support penetration into regions not well served by other MSME lenders.

The Client

VTB 24, is a specialised MSME, retail and mortgage-focussed bank. It is a 98.2% subsidiary of Vneshtorgbank which is Russia’s 2nd largest commercial bank with majority ownership by the state and holds a market share of approximately 10% of total assets, 5% of which are retail deposits. At end-September 2008, VTB-24 had USD 19,300 million in total assets and USD 2,127 million in total capital. VTB-24 operates through 122 branches and outlets across the Russian Federation.

EBRD Finance

Up to USD 150 million of senior debt funding.

Project Cost

Up to USD 150 million.

Environmental Impact

VTB-24 will be required to comply with EBRD's Performance Requirements for Financial Institutions, and should continue to implement the EBRD's Environmental and Social Procedures for Small and Micro Loans with an Environmental Risk Categorisation List (as revised in 2008) to the MSME sub-loans. Eligibility criteria for sub-loans will need to be reviewed for compliance with the Performance Requirements for Financial Institutions. VTB-24 will adhere to the EBRD's Environmental and Social Exclusion and Referral Lists, and submit annual environmental and social reports to the Bank.

Technical Cooperation

No previous TC has been received by VTB-24. The bank will, however, receive TC under the “EU Northern Caucuses MSME Development: Financing Component” which is targeted at increasing funding for small businesses in North Ossetia. The Procurement Notice for this has been published.

Company Contact

Mr Sergey V Suchkov
35 Myasnitskaya Street
Moscow 101990
Russia
Tel: +7 495 771 7809
Fax: +7 982 5858, Ext: 4531
Email: suchkov@vtb24.ru
Website: http://www.vtb24.ru/en/

 

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

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