Project description
and objectives:
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The proposed project envisages an equity investment to purchase 28.25% of the ordinary shares and voting rights in Bank Kazansky. The investment will comprise acquisition of the existing shares and participation in the future capital increases in Bank Kazansky. The project will be co-invested by Russia Partners II, LP.
The project will allow Bank Kazansky to streamline its ownership structure, improve its corporate governance and support implementation of the bank’s strategy aimed at enhancement of its competitive position in Tatarstan and expansion into neighbouring regions.
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Transition impact:
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Significant transition impact is anticipated in the following areas:
- strengthening competition among the medium-sized Russian banks by enhancing the ability of regional banks to compete, increasing their market share and improving financial intermediation;
- building a platform for future industry consolidation through supporting strong local banks, such as Bank Kazansky, which are well placed to play an important catalysing role in the consolidation process through attracting a strategic investor or promoting merger opportunities;
- the Project will reinforce corporate governance and promote transparency, including through streamlining of the ownership structure and strengthening of the Board of Directors.
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The client:
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Bank Kazansky is a universal privately owned regional bank established in 1994 and headquartered in the city of Kazan, Republic of Tatarstan. It is the 5th largest bank in Tatarstan and ranks among top 200 banks in Russia. The bank is serving corporate customers, with a particular focus on SME clients, and enjoys a strong retail customer base.
Bank Kazansky is existing partner bank of EBRD and currently benefits from SME loan facility and TFP.
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EBRD finance:
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EBRD will acquire 28.25% of the existing ordinary shares of Bank Kazansky and participate in the subscription to new shares in the future capital increases.
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Total project cost:
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TBC.
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Environmental impact:
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Bank Kazansky has adopted the EBRD’s Environmental Procedures for Intermediated Financing through Local Banks and is required to apply these procedures to the whole range of its commercial lending operations. This includes adherence to the FI Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety and labour legislation, appointment of a member of senior management with overall responsibility for the implementation of environmental procedures, and submission of annual environmental reports to EBRD.
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Technical
cooperation:
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Bank Kazansky currently benefits from the TC provided under the Russian Regional Banks Institution Building Programme financed by the EU Commission. This TC concentrates on the bank’s strategy and business plan, improvement of its organisational structure, establishment of adequate risk management system and overall efficiency and improvement of loan procedures.
Based on the conclusions and recommendations of the existing TC, a detailed IBP will be developed for further implementation of these recommendations by Bank Kazansky. For this purpose the Bank will seek additional funds from the EU Commission.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr Roman Kukovitskiy
Deputy Chairman of the Board
Yamasheva Str 61, Kazan 420126, Republic of Tatarstan, Russian Federation
E-mail: Romak@bik.ru
Tel: +7 (843) 517 4392 / 4371
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EBRD contact:
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Zulfira Akhmedova, Operation Leader: akhmedoz@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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