MDM Bank

completed

This SPI is an update of the SPI dated February 9, 2007. The project is a financing package comprising a senior loan of up to $100 million, for supporting MDM Bank (MDM or the Bank) expansion of term lending to SMEs, particularly in the regions outside Moscow as well as to support the Bank’s growing mortgage portfolio, and an equity investment of about $184 million, increased from the equity investment of about $100 million envisaged in the previous SPI issued in February 2007. The equity investment is being processed under investment number 25982 for which board approval is expected to be sought in June 2007. The loan of $100 million was committed on May 16, 2007. IFC is also considering a trade line to the Bank of up to $35 million under the Global Trade Finance Program.MDM is one of Russia’s leading private universal banks ranked amongst the top 11 in the country by asset size. MDM operates 122 outlets across Russia along with a network of 14 retail offices in Moscow. MDM Bank Group also includes securities trading and asset management companies, a leasing company and Latvian Trade Bank in Riga.