Sovcombank SME loan

complete

The proposed project envisages providing two loans for a total amount of RUB 1,020 million to Sovcombank, a private medium-sized regional bank for on-lending to MSMEs operating in Central Russia, the Urals, Siberia and the Far East. The Project is aimed increasing the financial access of micro, small and medium-sized enterprises in the Russian regions as well as broadening Sovcombank’s client outreach. The transition impact potential of the Project is expected in the following areas: Sovcombank is a rapidly developing multi-regional bank headquartered in Kostroma, it has an extensive regional network covering cities and towns of Central Russia. Through its subsidiary ARKA-Finance, Sovcombank operates in the Urals, Siberia and the Far East. Sovcombank provides a wide range of banking services to corporates, MSMEs, individuals and is pursuing a growth strategy with a particular focus on SME, MSE and retail lending. A four-year loan of RUB 530 million (equivalent of EUR 14.3 million) to be provided under the Multi-Product Framework for Medium-Sized Banks and a four-year loan of RUB 490 million (equivalent of EUR 13.3 million) to be provided under the Russian Small Business Fund Framework. RUB 1,020 million (equivalent of EUR 27.6 million) tba Up to EUR 150,000 under the Russia Small Business Technical Cooperation Special Fund (“TCSF”). The funds will be used to further improve Sovcombank’s proprietary scoring system for lending to Micro and Small Enterprises (“MSE”) and to help the bank develop secondary funding strategies for its MSE portfolio (e.g. through securitisation). Mr. Sergey Bondarovich Deputy CEO Tel. +7(495) 763-33-16 Fax +7(495) 748-43-70 Email: bond@sovcombank.ru