The European Bank for Reconstruction and Development (EBRD) is providing Bank Vozrozhdenie with a financing package totalling $81m aimed at increasing lending to the real sector of the economy.
Under the transaction, the bank will receive a mix of long-term funds and trade finance guarantees.
These will include:
• a five-year $35 million loan for on-lending to small and medium-sized businesses operating in the private sector
• a five-year $16 million loan from the EBRD’s Russia Small Business Fund (RSBF) for on-lending to micro and small enterprises
• up to $30 million in guarantees under the EBRD’s Trade Facilitation Programme (TFP) to help speed up import-export deals involving Vozrozhdenie Bank clients.
Small business sub-loans made under both the $35m EBRD funding and the $16m RSBF loan will have a maturity of up to five years.
Bank Vozrozhdenie’s corporate lending is dominated by small loans, with over 90% of all lending being made for sums less than 100m roubles (equivalent to approximately $3.3m). The bank has an extensive network branch through 20 of Russia’s 83 regions including 170 offices and more than 660 automatic teller machines. It is an important player in the Moscow region as well as well as the South and Northwest of the country.
It serves over 55,000 corporate clients and over 1.4m individual ones, offering a broad range of services including deposits, asset management, financing and credit cards.