SDM Bank Capital Increase

cancelled

Translated version of this PSD: Russian As part of the larger shareholders’ capital increase, the EBRD Board of Directors approved an equity investment into newly issued ordinary voting shares of SDM bank, resulting in the increase of the EBRD stake in SDM from the current 15.0% to 19.8% of SDM’s capital and voting rights, subject to the approval of the Central Bank of Russian Federation. The investment will support a mid-size private bank with strong focus on SME financing that will have a positive demonstration effect. Equity Increase will provide SDM with new capital. Capital increase of SDM Bank, supported by existing shareholders, including the EBRD, would help to strengthen SDM’s capital base, enhance SDM’s strategy and support SDM’s further business development. The EBRD’s representation on SDM’s Board will continue contribute to corporate governance strengthening and institutional development. SDM Bank (“SDM”) is a medium sized, privately owned bank based in Moscow. At end-3Q 2013, SDM was the 115th bank among the Russian banks by assets (USD 1,133 million). SDM strategy targets SMEs via its 49 offices in Moscow and eight regions of Russia. SDM is controlled by a local individual (67%), 15% is controlled by the EBRD and 8.5% stake belongs to Firebird Avrora Fund Limited (American investment fund) Increase of the EBRD stake in SDM from the current 15% to 19.8% of SDM’s capital and voting rights. Categorised FI in accordance with EBRD's 2008 Environmental and Social Policy. SDM bank is 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. Prior the original equity investment SDM has received EBRD's environmental and social risk management training for FIs, and a separate E&S Risk Management Plan has been prepared for SDM to ensure its compliance with PRs 2 and 9. SDM will be required to implement this Plan and to submit annual environmental and social reports to the Bank. None. Anna Kolokoltseva International Business Director Tel; +7 (495) 490-45-71 E-mail: kolokoltseva@sdm.ru