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.