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| CI Russia Residential Energy Efficiency Finance / Agribusiness Finance |
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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 | 28633 |
| Company name | Open Joint Stock Company Commercial Bank "Center-invest" |
| Country | Russian Federation |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Pending Signing |
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| Date SPI disclosed | September 11, 2009 |
| Projected board date | October 12, 2009 |
| Previous Events | Approved: November 9, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Center-Invest Bank (“CI” or the “Bank”) is a medium sized private regional Russian bank headquartered in Rostov and ranked 70th in terms of assets at end June 2009. The Bank is the second largest following state-owned Sberbank in Rostov region with expanded branch network (90 outlets) in the neighborhood regions of Volgograd, Krasnodar and Stavropol. The Bank focuses on retail, SMEs and corporate clients providing them with a wide range of products including overdrafts and short-term credit, working capital loans, investment loans and trade finance products.
The Project represents a finance package consisting of (i) senior loan to implement a pilot project for Residential energy efficiency finance in Rostov and neighborhood regions; (ii) senior loan to finance SME in agricultural sector of South Russia; and (iii) trade finance line to support trade activities of the Bank’s SME clients. |
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| Project sponsor and major shareholders of project company |
| The combined share of international financial organizations is 72% with participation of EBRD, 27.5%; DEG, 22.5%; Erste bank, 9.8%, Renaissance Capital, 8.15%, and Raiffeisenlandesbank, 3.58%. A 17.84% stake is co-owned by Dr. and Mrs. Vysokov, chairman of the Board of Directors and Head of the Audit and Compliance Committee respectively, who were among the main founders of the Bank. The remaining 10% is owned by investment funds. |
| Total project cost and amount and nature of IFC's investment |
| The proposed IFC investment represents a finance package of up to $30 million. |
| Location of project and description of site |
| CI is headquartered in Rostov. As at June 2009 its branch network consisted of 133 branches and sub-branches in Rostov region, Krasnodar krai, Volgograd region and Stavropol Krai. The Bank has two representative offices: in Moscow and London. |
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| Anticipated development impact of the project |
This project is expected to contribute to:
- Rehabilitate and restore confidence in the sector by helping a viable regional bank (demonstration effect);
- Introduce and promote new IFC’s Russia Residential Energy Efficiency Program.
- Increase the Bank’s lending, with relatively longer maturities, to SMEs in agri-sector, thus supporting this underserved segment of the economy in the region of Southern Russia. |
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| IFC's expected development contribution |
By providing the loans, IFC would be playing an active role in helping to:
- Build and strengthen the delivery capacity of term financing to SMEs;
- Promote the development of specialized and innovative Energy Efficiency products;
- Encourage lending to the underserved SME segment in the local market, specifically in agriculture and SME sector;
- Share the best practice standards and international expertise. |
| Environmental and social issues - Category FI |
This project has been classified as a Category FI project according to IFC's Environmental and Social Review Procedure.
As an existing IFC client, Center Invest has been in compliance with IFC's S&E requirements, developed an SEMS, provided IFC with the required documentation and reported regularly. This appraisal will focus on Center Invest's capacity to identify, monitor, and manage risks associated with lending to SMEs in agribusiness. The Bank will be required to provide an English translation of its current Environmental and Social Policy and Procedures. The client is also asked to complete a labor questionnaire to enable IFC to appraise Center Invest's labor practices according to the IFC's Performance Standards 2: Labor and Working Conditions. If required, IFC will suggest Supplemental Actions to address any gaps in the client's existing SEMS. |
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| For inquiries about the project, contact: |
Grigory O.Chorayan, Head of Treasury and FM departments, Center-Invest Bank.
Address: 62, Sokolova Str.,
Rostov-on-Don, 344010,
Russia.
Tel.+7 (863) 267 58 33,
fax +7 (863) 264 06 40,
e-mail: eurodept@centrinvest.ru, www.centrinvest.ru |
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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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