EBRD provides Bank Vozrozhdenie with $ 81 million funding

10 November 2009

EBRD is providing Bank Vozrozhdenie with a diversified financial package in loans and guarantees totaling $ 81 million. It is the first ever deal between EBRD and Vozrozhdenie in the course of which the bank receives a mix of EBRD financing facilities.

Funding is aimed at helping the bank increase lending to the real sector of the economy. EBRD financial package includes:

  • A five-year $35 million loan for on-lending to small and medium-sized private businesses
  • A five-year $16 million loan from EBRD’s Russia Small Business Fund (RSBF) for on-lending to micro- and small businesses
  • Up to $30 million in guarantees under the EBRD’s Trade Facilitation Programme (TFP) to help speed up import-export deals involving Bank Vozrozhdenie clients.

“This deal inaugurates an important new relationship with a bank playing a systemic role in Russia’s economy through its focus on the regions and lending to the grass-roots small businesses which hold the key to Russia’s economic diversification” — said Nick Tesseyman, the EBRD Business Group Director in charge of Financial Institutions.

Micro, small and medium-sized businesses are as a sector at the heart of the EBRD’s mandate but because of the crisis they are suffering from a lack of access to lending, particularly as regards long-term funding.

“EBRD’s decision to provide Bank Vozrozhdenie with funding based on thorough and comprehensive due-diligence proves the confidence of international partners in the bank’s stability and creditworthiness. Long-term EBRD funding will enhance the bank’s support of SME clients in a difficult macroeconomic situation. EBRD’s guarantees allow the bank to widen its ability to assist clients involved in import-export deals in terms of trade finance facilities” — pointed Andrey Shalimov, the member of the Bank’s Management Board and the Head of Treasury.

Bank Vozrozhdenie 9M 2009 net profit after taxes under RAS amounted to RR 1.03 billion
The Board of Directors of Bank Vozrozhdenie held its regular meeting