RPSB Equity

completed

_x000C_IFC’s Financial Markets strategy in Russia places a high priority on improving access to finance in non-urban areas and on improving the stability of the banking system by assisting in the consolidation of a highly fragmented sector and by reducing the concentration of state-owned banks. As a result, IFC looks to support second- and third-tier banks in regions that are under-served by the banking system.The proposed project consists of an equity investment of up to $22 million in RostPromStroyBank (RPSB or the Bank), a medium-size bank located in Rostov-on-Don (a frontier region), to purchase 20% of the voting shares of RPSB. The Bank was established in 1922 under the name of Industrial Bank. In 1959, it was renamed as Stroybank USSR (Construction Bank of USSR), and in January 1992 registered as Rostpromstroybank. It is a universal bank specializing in corporate loans, consumer loans, mortgage lending and credit cards. Its client base is very diverse, and ranges from the largest companies of Rostov-on-Don and the Rostov region to small businesses and individual entrepreneurs. The branch network is yet not too large, and includes Head Office and 2 outlets in Rostov-on-Don, one outlet in Belaya Kalitva, and one outlet in Salsk. The Bank has 22 ATMs.