Bank Vozrozhdenie in Russia is set to increase its lending capabilities after receiving a package of loans and guarantees from the European Bank for Reconstruction and Development (EBRD).
It is the first deal the Russian bank has closed with the EBRD. The US$81mn package includes a mixture of long-term funds and trade finance guarantees.
These include a five-year US$35mn loan for on-lending to small and medium-sized businesses in the private sector; a five-year US$16mn loan from the EBRD’s Russia small business fund for on-lending to micro and small enterprises; and up to US$30mn in guarantees under the EBRD’s trade facilitation programme, which will help speed up trade finance transactions involving Vozrozhdenie bank clients.
EBRD is focused on supporting micro and small businesses in Russia among other regions, as it is these companies that are suffering the brunt of the crisis.
Bank Vozrozhdenie's client base mainly consists of smaller companies, with its corporate lending portfolio dominated by small loans. Around 90% of all its lending being made for sums under 100mn roubles – the equivalent to US$3.3mn.
According to Russian Central Bank data, Bank Vozrozhdenie ranks among the top 30 Russian banks. It has a relatively strong presence in the Moscow region, as well as in the south and northwest regions of the country. It serves over 55,000 corporate clients.
Last Updated November 12, 2009
Reader Comments