Transcapitalbank Residential RSECF EE Loan

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Translated version of this PSD: Russian The EBRD is considering a loan to Transcapitalbank (TCB) under the residential component of EBRD’s “Russian Sustainable Energy Financing Facility” (“RSECF”). TCB, based in Moscow, became an EBRD partner in 2004. Due to TCB’s strong presence in the regions of Russia the Project will contribute to improving household’s and private sector enterprises’ access to finance for investments in energy efficiency. The project will generate transition impact through its demonstration effect by kick-starting bank lending for energy efficiency improvements in residential buildings. It will support the development of a practically non-existent market for residential energy efficiency loans and demonstrate its social and economic benefits. Moreover, the implementation of this project by TCB will demonstrate to Russian commercial banks the market potential in the sector. In addition to the Demonstration Effect, the project will also contribute to the Transfer of Skills. Dedicated technical assistance (“TC”) will help TCB with designing products and setting up procedures. On the level of sub-borrowers, a comprehensive package of technical assistance will address information asymmetries as well as capacity constraints. TCB’s clients - sub-borrowers - will become more familiar with energy efficiency opportunities in the residential sector, the requirements of financial institutions for providing commercial financing and how to better structure loan applications. TCB is the 41th largest bank in Russia by total assets, operating through 78 outlets covering 19 regions of Russia with assets of USD 3.9 bln. and equity of USD 460 mln. as of 1 April 2013. The bank’s shareholders include the local sponsors, EBRD, DEG, IFC and other small shareholders. The bank is B1 rated by Moody’s. Senior loan of RUB 750 million. RUB 750 million. Categorised FI. TCB has been satisfactorily applying the EBRD's E&S requirements under existing transactions and will be required to continue to comply with the EBRD's PR2 and PR9. TCB will submit reports to the Bank on the RSECF loans and on environment, health and safety and labour issues associated with its operations and portfolio. TCB will receive comprehensive TC support for implementation of the RSECF Residential, provided by Kommunalkredit Public Consulting GmbH, funded by the Austrian Ministry of Finance. The technical consultants will support TCB with establishing internal procedures and the launch of the residential energy efficiency product across TCB’s branch network. Furthermore, the consultant will provide advisory services to Russian homeowners on the selection of best available technologies, project preparation, current energy efficiency standards for buildings and the existing regulatory framework. Marina Emelyanova Senior Manager, International Finance Unit International Business Division Tel.: +7 (495) 797 32 00 ext. 19 13