Project description
and objectives:
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The proposed project is aimed at strengthening the Russian banks’ residential
mortgage lending capacity and skills. Development of affordable residential
mortgage financing in Russia through Russian partner banks, especially in the
regions, is a key aspect of the proposed Framework.
Under the proposed project the Bank would extend credit lines directly to the
selected partner banks committed to developing residential mortgage lending.
The Framework partner banks would utilise the funds for on-lending to eligible
local borrowers. It is anticipated that the Framework funds will be fully
drawn within 2005-2007.
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Sub-projects:
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- URSA - Credit Line under Mortgage Framework
- Chelindbank - Credit Line under Mortgage Framework
- Transcapitalbank - Credit Line under Mortgage Framework
- Vostochny Express Mortgage Credit line
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Transition impact:
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The proposed transaction would foster the development of residential mortgage
finance in Russia by supporting selected partner banks’ mortgage lending
activities.
The key transition impact areas will be: market-economy promotion as a result
of expansion of affordable residential mortgage financing in Russia; and
transfer and dispersion of skills as a result of improvement of partner banks’
residential mortgage financing operations.
Participating banks will be required to comply with EBRD’s Mortgage Loan
Minimum Standards, which are based on the best practice of the world’s leading
mortgage finance institutions.
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The client:
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The project is aimed at the Bank’s existing partner banks among:
(i) regional banks
(ii) mid-sized Moscow-based banks.
Each PB will be assessed individually in accordance with specific criteria,
which among other things include: partner bank’s financial strength; partner
bank’s strategic interest in developing residential mortgage financing;
partner bank’s strong regional presence.
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EBRD finance:
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USD 50.0 million. The funds under the Framework will be disbursed to selected
partner banks for mortgage on-lending to local borrowers.
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Total project cost:
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USD 50.0 million.
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Environmental impact:
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Partner banks will need to implement the EBRD’s Environmental Procedures for
Residential Mortgage Lending for all mortgage loans under the credit line
which stipulates that a property survey is conducted for each loan as part of
their due diligence. The survey should include consideration of potential site
contamination, use/presence of hazardous materials in construction, risk of
flooding, or seismic activity and compliance with the applicable national
environmental, health and safety standards and regulations. Each Partner Bank
will also need to submit an annual environmental report to the EBRD.
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Technical
cooperation:
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Partner banks approved under the Framework will be supported where necessary
with technical assistance funds committed under the Regional Bank Institution
Building Program. The consultants hired for the project under the technical
assistance programme will train partner banks’ staff and assist in developing
and expanding mortgage lending operations.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Alexander Saveliev
EBRD
Tel: +44 20 7338 6672
Fax: +44 20 7338 6119
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EBRD contact:
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Alexander Saveliev, Operation Leader: saveliea@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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