NBD-Bank Syndicated Loan

complete

NBD Bank (NBD) is planning to raise a senior A/B loan of up to USD 20 million, of which USD 5 million (A loan) will be the EBRD portion and up to USD 15 million (B loan) will be syndicated to commercial banks. This is expected to take place over the coming months and is subject to market conditions. The project is aimed to assist NBD in raising its first international syndicated loan and increasing the number of its partners in the international capital market, which will contribute to develop and diversify NBD’s funding base going forward, as the bank has so far been largely reliant on IFI funding. The proceeds will be used for the purpose of on-lending to micro-, small and medium-sized enterprises. This project will further enhance the transition impact made by EBRD to date by facilitating the development of the strong regional MSME bank in the Volga district and hence - increase of the financial intermediation in the MSME sector in this economically important district of Russia. The proposed project will assist NBD to: a) diversify its funding base by attracting a first international syndicated loan; b) reduce refinancing risk by securing a longer term amortising facility; c) further enhance its competitive position in the local market by increasing availability of longer-term funding to MSMEs. NBD Bank (NBD) is a full service regional MSME bank in Nizhny Novgorod region and among the top 20 regional banks in the Privolzhye Federal District. As of end-June 2007, NBD ranked the third largest regional bank by total assets and the second – by the customer loan portfolio in Nizhny Novgorod region. The bank operates through 14 offices in the Nizhny Novgorod region and 2 offices in the neighbouring regions of Ivanovo and Chuvash Republic with the plans for further expansion in other neighbouring regions. EBRD will provide NBD with an A loan of USD 5 million. Senior A/B loan of up to USD 20 million, of which USD 5 million (A loan) will be the EBRD portion and up to USD 15 million (B loan) will be syndicated to commercial banks. NBD follows EBRD’s Environmental Procedures for Intermediated Finance through Local Banks in its lending activities as well as environmental standards required by its other IFI partners. NBD is also in full compliance with applicable national environmental, health and safety requirements and adheres to the Environmental Exclusion and Referral List. Up to EUR 500,000 TC financing under Russian Regional Banks Institutional Building Programme to assist the bank in strengthening strategic planning and risk management skills in view of the ongoing branch network expansion. Mr. Evgenij Maksakov Head of Corporate Finance & Customers Tel: + 7 831 22 000 22 Fax: +7 (831) 434-39-48 Email: maksakov@nbdbank.ru