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| ATB Far East Rus |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26269 |
| Company name | Asian-Pacific Bank (Open joint-stock company) |
| Country |
| Russian Federation |  |
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| Sector | Commercial Banking - General |
| Environmental category | FI |
| Department | Reg Ind, Financial Markets, EMENA |
| Status | Active |
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| Date SPI disclosed | November 21, 2007 |
| Projected board date | January 31, 2008 |
| Previous Events | Invested: September 4, 2008
Signed: August 15, 2008
Approved: July 15, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Asian Pacific Bank (ATB or the Bank) is a mid-sized Russian regional private bank headquartered in Blagoveshchensk, the capital of the Amur region. It has presence in the frontier regions of the Russian Far East and Eastern Siberia. It holds the seventh largest market share in terms of total assets among 53 banks registered in the Far East region. The bank is mainly engaged in retail lending operations. The bank has a well-diversified regional branch network across five sub-regions of Russia’s Far East Federal District and has recently expanded into sub-regions of the Siberian Federal District.
This project comprises a financial package of a loan and equity. |
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| Project sponsor and major shareholders of project company |
| 72.8% of the Bank is owned equally by 4 shareholders: Andrey Vdovin, Kiril Yakubovsky, Pavel Maslovsky, and Peter Hambro – who are also the core shareholders of a publicly AIM-listed company, Peter Hambro Mining, one of the largest gold and ore mining companies in the Amur region of Russia. East Capital Private Equity Fund, through its Sweden-domiciled closed-end 350 million Euro East Capital Explorer Financial Institutions Fund owns 20% of the Bank’s shareholding. The minority stake of 7.23% in the Bank is owned by Mr. Aksenov, the Chairman of ATB. |
| Total project cost and amount and nature of IFC's investment |
| The total cost of the project is estimated at about $35 million equivalent. The proposed IFC investment is about $35 million equivalent for IFC’s own account. |
| Location of project and description of site |
| ATB is headquartered in Blagoveshchensk, the Amur Oblast of Russia and operates through offices across several Russian cities and towns in the Far East and Eastern Siberia. |
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| Anticipated development impact of the project |
The project will have strong development impacts. It will:
- support regional expansion of ATB in a frontier and underserved region of Russia’s Far East and Eastern Siberia;
- share IFC’s global expertise with the Bank in introducing best practices of corporate governance, SME, mortgage, and trade finance;
- deepen the financial market in Russia by enhancing access to finance to ATB and thus, to millions of people and corporates resided in the Far East and Eastern Siberia of Russia. |
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| IFC's expected development contribution |
The project will have strong development contribution. It will:
- increase access to finance and reduce risk of borrowing in foreign currency for Russian people and corporates in frontier and underserved regions of the Far East and Eastern Siberia of Russia by providing long term funding in local currency for mortgage and SME onlending to the Bank;
- support consolidation of the banking sector in the Far East of Russia by investing in equity of a mid-sized bank and equities of its sponsor-related bank subsidiaries as they merge with the Bank; and
- distribute IFC’s global and long term expertise in corporate governance and mortgage, SME and trade finance among Russia’s banks, such as ATB, in frontier regions. |
| Environmental and social issues - Category FI |
This project has been classified as a category FI according to IFC’s Environmental and Social Review Procedure.
During appraisal, IFC will analyze the bank’s portfolio for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of:
- The IFC FI Exclusion List; and/or
- The applicable National Social and Environmental Laws and regulations; and/or
- The IFC Performance Standards.
IFC will also review, if required, the capacity of the bank to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.
Based on the review, the bank will be required to:
- Develop an, or upgrade if necessary any existing SEMS prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC. |
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| For inquiries about the project, contact: |
Mr. Evgeny Aksenov, Chairman of the Management Board
Asian-Pacific Bank
225, Amurskaya Str., Blagoveshchensk, Amur Oblast, Russia, 675000
Telephone: +7 (4162) 220 402/406
Fax: +7 (4162) 220 400
E-mail: aksenov@apsb.amur.ru
Website: http://www.atb.amur.ws/ |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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