3 August 2009
The European Bank for Reconstruction and Development (EBRD) is considering an SME Senior loan to Bank Vozrozhdenie for on-lending to eligible private sector SME clients of the bank. The project will provide long-term resources to Bank Vozrozhdenie thereby supporting it in its efforts to continue lending to the real economy of the Russian Federation. The proposed project consists of a senior loan in the amount of USD 35 million with a
“The joint project with the European Bank for Reconstruction and Development is very important for us as its implementation will have a comprehensive positive effect on the Bank’s business. The project will allow us to support our key client segment, SMEs, and will provide us with the opportunity to take advantage of the international EBRD experience to improve our current credit processes. Moreover, in a difficult economic environment such project proves the confidence of international investors in Bank Vozrozhdenie and its long-term perspectives” — commented Andrey Shalimov, the Bank’s Head of Treasury and the member of the Management Board.
“This project will have an important demonstration effect in a difficult overall market situation through supporting a systemically important bank in successfully weathering the crisis. It will support the important private sector bank in competing with public sector banks and channel longer term funding to real sector SME borrowers, which suffer from a lack of access to loans” — was pointed in a project description on the EBRD web-site.
It’s not the first experience of Bank Vozrozhdenie cooperation with the international financial institutions. In 2008 the bank has raised a subordinated loan in the amount of USD 50 million from the German and Dutch development institutions, DEG and FMO.