Center-Invest Bank (CIB) Equity Investment II

disbursing

The operation consists of USD 5.3 million equity investment for subscription to the newly issued shares. Being part of a USD 21 million capital increase, the investment will support development one of the leading private banks in Southern Russia by increasing its capital, strengthening its operations, and enhancing its competitive position in the region. The project will also support the on-going improvements of Center-Invest Bank’s corporate governance and internal systems, which were introduced at the time of EBRD’s initial investment in September 2004, when EBRD acquired 25.23% shareholding in Center-Invest Bank. Aimed at the increase of continuing insufficient financial intermediation in the Russian market, the project’s transition impact will be most prominent in the following three areas: (1) supporting development of a leading regional bank and promoting financial intermediation; (2) improving corporate governance and strengthening internal systems of Center-Invest Bank; (3) enhancement of competition in the banking sector – as a result of the project Center-Invest Bank will be able to assert itself as a credible regional competitor to larger Moscow-based and state-owned banks. Center-Invest Bank, a Rostov-on-Don based bank, one of the leading financial institution in Southern Russia with excellent knowledge of the local market and focus on small and medium companies financing and retail banking. Equity investment of USD 5.3 million into newly issued ordinary shares. USD 5.3 million. The client complies with EBRD’s Environmental Procedures for Intermediated Finance through Local Banks, including compliance with applicable national environmental, health and safety requirements, adherence to the Environmental Exclusion and Referral List, submission of annual environmental reports to the Bank and nomination of an officer responsible for environmental issues. Institutional building consultant to be selected. Ms. Gregory Chorayan, Member of the Management Board Bank Center-Invest 62, prospect Sokolova, Rostov-on-Don, Russia, 344010; Tel. + 7 8632 675 833 Fax +7 8632 640 640; E-mail: eurodept@centrinvest.ru