NBD BANK EQUITY INVESTMENT

cancelled

An equity investment of US$ 5.5 million in NBD-Bank, Nizhny Novgorod, for the purposes of institutional development and on-lending for private sector enterprises in the Russian Federation. Cancelled following Board approval. Project objectives: The investment will support the growth, development and strengthening of a quality private sector institution and the private sector in general by providing term funds needed for the development of its retail infrastructure and activity in the SME sector. NBD-Bank, a regional commercial bank based in Nizhny Novgorod providing retail banking services to individuals and small and medium-sized enterprises (SMEs). As at 30 September 1996 it had net worth totalling US$ 11.2 million and total assets of US$ 59.9 million. The equity investment of ECU 4.3 million equivalent will support NBD-Bank's institutional development and resources needed for further development of the regional retail infrastructure and for an increase in medium-term lending to local productive private sector enterprises or enterprises in the process of privatisation. US$ 5.5 million (ECU 4.3 million equivalent). C/0: The project does not require an environmental audit. Sub-projects will be financed in accordance with the EBRD's environmental procedures for financial intermediaries. NBD-Bank will report to the EBRD on environmental issues associated with the project. Technical cooperation has been provided to the bank in the course of equity investment preparation. Additional technical cooperation will be made available via the proposed twinning partnership with a foreign bank under the Financial Institutions Development Project (FIDP).