Bank Vozrozhdenie SME Loan

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The EBRD is considering an SME Senior loan to Bank Vozrozhdenie in the amount of up to USD 35 million for on-lending to eligible private sector SME clients of the bank. The project will provide necessary long-term resources to Bank Vozrozhdenie thereby supporting it in its efforts to continue lending to the real economy of the Russian Federation. The 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 this 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. Bank Vozrozhdenie is a leading privately owned universal bank with more than 170 branches in Moscow, the surrounding regions, the South and the Northwest of Russia. Ranked among Russia’s top 15 private banks, it serves a wide variety of individuals, SME and larger corporate clients. The proposed project consists of a senior loan in the amount of USD 35 million for on-lending to eligible private sector SME clients with a 5-year maturity and a 2-year grace period. USD 35 million. Screened FI in accordance with 2008 Environmental and Social Policy. Due diligence reviewed V-Bank's existing approaches to environmental and social issues and the Human Resources policy, and confirmed that those are satisfactory and are generally in line with EBRD's Performance Requirements. Although a new Client for EBRD, V-Bank already cooperates with other international development financiers such as DEG and FMO, and this brought considerable improvements to their existing practice, with environmental and social considerations being integrated into their loan appraisal process. V-Bank will be required to comply in full with the EBRD's Performance Requirements for FIs (specifically, PR2 and PR9) which includes adoption of the appropriate E&S procedures from the e-Manual, adherence to the EBRD's Environmental and Social Exclusion and Referral Lists, appointment of a member of senior management with the overall responsibility for the implementation of the EBRD's E&S procedures, and submission of annual environmental and social reports to the EBRD. None. Mr. Arvid Tuerkner E-mail: TuerkneA@ebrd.com Ms. Julia Vinogradova E-mail: investor@voz.ru