Russian Securitization Facility-1

completed

The project comprises IFC’s first securitization facility of up to US$50 million in a series of asset-backed securitization transactions contemplated currently by the Russian financial institutions. The proposed project will be used as a credit enhancement to support two proposed cross-border securitizations planned by Russian Standard Bank (RSB or the Bank), a leading consumer finance bank in Russia. One transaction would involve the securitization of car loan assets and the other transaction would involve the securitization of RSB’s credit card receivables.The proposed investment will represent an effort by IFC to support the development of the securitization market in Russia, which is an important ingredient in the continued growth of the private banking sector of Russia. In addition to the funding mobilization, IFC’s securitization facility will also aid in the development of the financial markets in Russia through: - increased adoption of “best practice” credit scoring techniques,- increased disclosure and transparency required by rating agencies and capital markets investors, and- the dissemination of state-of-the-art financial engineering techniques. The transaction builds on IFC’s existing successful investments in RSB and will help RSB to mobilize funding, while limiting direct IFC’s funding to the Bank, and on the experience in supporting two other Russian securitizations earlier in 2006.