Project description
and objectives:
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Recapitalisation financing for International Moscow Bank, Russia's fourth-largest commercial bank recapitalisation financing in the Russian Federation. The EBRD proposes to finance part of the recapitalisation programme initiated by IMB's major Western shareholders, which is necessary because the Russian financial crisis of 1998 effectively eliminated IMB’s equity. The recapitalisation will allow IMB to comply with the Central Bank of Russia and IAS standards.
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Transition impact:
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The project will have a significant "demonstration effect" as it is the first internationally led recapitalisation of a Russian bank since the 1998 financial crisis. The project will also increase genuine commercial competition in the Russian banking sector.
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The client:
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International Moscow Bank (IMB) – a majority Western-owned consortium bank established and operating in Russia, with headquarters in Moscow.
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EBRD finance:
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US$ 10 million (EUR 10.4 million) of subordinated debt for inclusion into Tier 2 capital and an investment of US$ 5.3 million (EUR 5.5 million) into ordinary shares of IMB, which will make the EBRD a 10% shareholder. Both the equity and subordinated debt might be later shared with another party.
Participation of the EBRD will be a part of and subject to the total recapitalisation of the bank in the amount of US$ 70 million (EUR 72.5 million). IMB’s consortium shareholders structure will be changed as a result of the recapitalisation, with two reputable foreign banks leading the process as major shareholders.
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Total project cost:
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Total project costs are US$ 15.3 million (EUR 15.9 million).
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Environmental impact:
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The project will not have significant environmental impact since the funds to be provided are not for further on-lending.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Mikhail Grechikho, Operation Leader: grechikm@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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