The European Bank for Reconstruction and Development (EBRD) is set to acquire a 11.75% equity stake in Promsvyazbank, a Russian locally-owned private bank.
In addition, the EBRD plans to pay 4.6bn roubles to subscribe to a recent issue of ordinary voting shares.
The transaction, which is subject to regulatory approval, would give the EBRD and Promsvyazbank’s other minority shareholder, Commerzbank, sufficient shares jointly to create a blocking minority stake of over 27 percent.The investment will entitle the EBRD to nominate a director to the Board of Directors of Promsvyazbank.
Established in 1995, Promsvyvazbank employs around 10,000 staff serving some 80,000 corporate customers and nearly a million retail ones. It has an important regional presence and is active in trade finance, factoring as well as lending to small businesses, all sectors which are key EBRD priorities.
The investment will strengthen the the bank’s capital base in order to support its business in the current difficult environment.