Project description
and objectives:
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Senior term loan of up to US$ 90 million, with an A/B structure, B loan to be syndicated, to be provided to Russian Standard Bank (RSB) to support its consumer finance activities, with a particular focus on developing consumer lending in the regions.
The primary objective of the project is to assist RSB in diversifying its funding base and support its regional expansion. The proposed A/B structure aims to make the loan more attractive to foreign investors, and, therefore, have a positive impact on a syndication outcome.
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Transition impact:
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The project will foster development of consumer finance in Russia and promote competition in the project sector with a wide geographical spread. With additional funding RSB will be able to achieve broader regional outreach, thus making consumer finance available to a larger number of Russian households. At present consumer finance is available predominantly in large metropolitan areas.
Greater competition in consumer finance market will contribute to interest rates reduction and is seen to bring more formality and regulation in this sector.
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The client:
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RSB was established in June 1999 by Mr. Roustam Tariko and became the first Russian commercial bank with a strategic focus on consumer finance. Its business strategy was based on a business plan and marketing study produced by McKinsey & Co. specifically for RSB.
At the end of 2003, RSB ranked 27th among Russian banks by total assets and 50th by net worth (by Russian accounting standards). RSB has a long-term counterparty credit rating of B from Standard & Poor’s Rating Service, and a long-term foreign currency deposit rating of Ba3 from Moody’s Investor’s Service Inc.
In July 2004 RSB announced a sale of a 50% stake in a holding company which controls over 90% of RSB’s shares to BNP Paribas Group via its Cetelem subsidiary. This sale is pending approval by the Central Bank of Russia and the Russian anti-monopoly regulator, and is expected to be completed by the end of 2004. The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, holds 6.42% of RSB’s shares.
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EBRD finance:
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Senior term loan of up to US$ 90 million, with an A/B structure, B loan to be syndicated.
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Total project cost:
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US$ 90 million.
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Environmental impact:
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There are no environmental risks associated with the consumer financing, therefore there will be no environmental requirements associated with this operation.
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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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Levan Zolotarev, Senior Vice President.
Email: lzolotarev@rs.ru
Tel.: +7 095 797 84 09
Fax: +7 095 797 84 40
Nina Filimonova, Vice President, International Department.
Email: filimonova@rs.ru
Tel.: +7 095 797 84 05
Fax: +7 095 797 84 40
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EBRD contact:
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Dmitry Dmitriev, Operation Leader: dmitried@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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