DeltaCredit Bank

completed

DeltaCredit provides mortgage loans in Moscow and St. Petersburg directly to individuals and indirectly through funding mortgages via fourteen foreign and local Russian banks, all using stringent underwriting and servicing standards specifically designed for the Russian market. The underwriting criteria were designed with FannieMae experts and Russian lawyers. At year-end 2002, the outstanding mortgage portfolio reached over $53 million, and asset base of $63 million. By providing a warehouse line to an existing Russian client, IFC’s financing would help DeltaCredit build the volume of mortgage loans needed to eventually securitize its loan portfolio on the domestic or international capital markets or sell it to an unrelated third party on commercial basis. Through a properly structured deal to be entered by DeltaCredit with foreign or domestic financial institutions, IFC would introduce DeltaCredit to a professional way of collateralizing its mortgages on behalf of DeltaCredit’s lenders and be the leader of “best practice” in this industry in Russia. Also, the proposed financing would cement further a strong partnership between DeltaCredit and IFC for years to come.