Rusfinance Bank Rouble Loan

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The proposed project is a senior loan of RUB 2.1 billion to Rusfinance Bank (ex-Promek Bank), a consumer finance bank that belongs to Societe Generale Group. The proceeds of the loan will go towards financing the portfolio of consumer loans in the Russian Federation. The proposed Russian Rouble loan will further advance the availability of local currency funding for banks lending to Russian citizens. Lack of funding, especially of local currency funding, is a major impediment to growth in the Russian consumer finance sector. The project will increase the competition in the consumer finance market in Russia by supporting the entry of a new strong foreign strategic investor. This helps to expand the market both through lowering over time the interest rates and an increased range of local currency credit products. The entry of Societe Generale will demonstrate that western business practices and strong corporate governance can be implemented in banks in the Russian consumer finance sector. SG will bring its consumer finance business practices to Promek and hence set an example of best practices in business conduct and consumer protection to other market participants. Rusfinance Bank (ex-Promek Bank) is a Samara based consumer finance bank. It was recently acquired by Rusfinance S.a.S. Rusfinance is a consumer finance bank, 68 % owned by Societe Generale, France (‘SG’) and 32 % by Baring Vostok Capital Partners, Russia. RUB 2.1 billion (EUR 60 million) senior term loan for financing the development of consumer finance portfolio. EUR 60 million. There are no environmental risks associated with the consumer financing, therefore there will be no environmental requirements associated with this operation. None. Maurice Caulliez, CFO, Rusfinance Tel: +7 095 540 7000 Fax: +7 095 789 6921