Promsvyazbank Equity Investment

complete

The project involves a capital financing package for Promsvyazbank (PSB) for the total amount of RUB 4.0 bn (EUR 94 million equivalent) consisting of: (i) a pro rata participation by the Bank in the capital increase of PSB for RUB 470 million (EUR 12 million equivalent), and (ii) a subordinated loan from the Bank to PSB of RUB 3.5 bn (EUR 82 million equivalent). The project will support one of the largest private banks in Russia, growth of financial intermediation and real sector financing as well as competition in the banking sector. Promsvyazbank (PSB) is the 10th bank in Russia and 2nd largest locally owned private universal bank in terms of total assets, with a network covering over 50 Russian regions. The bank is owned by local shareholders Messrs. Alexey and Dmitry Ananiev owning PromsvyazCapital B.V. (72.93% in total), Commerzbank Auslandsbanken Holding AG, Germany (15.32%) and EBRD (11.75%). (i) Participation in the capital increase for RUB 470 million (EUR 12 million equivalent), (ii) A subordinated loan of RUB 3.5 bn (EUR 82 million equivalent). RUB 4 bn (EUR 94 million). Categorised FI. Due diligence has reviewed the capacity of the client to effectively adopt and implement Bank’s Performance Requirements and found that it is satisfactory. PSB, an existing client, will be required to comply with the Bank's Performance Requirements 2 (Labour and Working Conditions) and 9 (Financial Intermediaries) which include implementation of the Bank's Environmental and Social Procedures for Corporate Lending across the full range of its business activities and adherence to EBRD's Environmental and Social Exclusion and Referral Lists. PSB's past environmental performance and reporting has been satisfactory. None. Anna Belyaeva Financial Institutions and International Capital Markets Tel: +7 (495) 221 36 96 E-mail: belyaeva@psbank.ru