Summary of Proposed Investment
Project Number
24542
Company Name
Bank Russki Standart AO
Date SPI Disclosed
Oct 14, 2005
Country
Russian Federation
Industry
Financial Markets
Projected Board Date
Nov 17, 2005
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Nov 17, 2005
Signed : Dec 2, 2005
Invested : Dec 19, 2005
Project Description
This proposal comprises two independent Projects with Russian Standard Bank, (RSB, or the Bank), Russia’s leading retail bank and an existing client of IFC:
Loan Facility: The first project comprises A and B loans totaling $100 million to RSB.
Mezzanine investment in securitization: The second project comprises an investment of about $30 million in credit enhancement to support a proposed securitization of consumer loans by RSB.
Both of the above transactions build on IFC’s existing successful investments in RSB, both equity and debt, and represent an effort by IFC to play a mobilization role to source funding for RSB, while limiting direct IFC funding to the Bank.
The Bank: RSB is a large-sized rapidly growing private Russian bank and one of the leading consumer finance banks in Russia, with a unique point-of-sale (POS) consumer finance business model. RSB sells its financial products and services, comprising POS loans, credit card loans, and car loans to consumers through partner retail shops. RSB started its operations in Moscow in 1999 and has since expanded into various regions of Russia. RSB now operates through its network of 21 branches in Moscow and other regions in Russia, 13 regional centers, 158 representative offices in other major Russian cities representing 93% of Russia’s population and over 21,500 POS. RSB’s strategic objective is to broaden its distribution network by extending its business to all of the major Russian regions and to provide a wider group of customers with a full range of consumer finance products.
Loan Facility: The first project comprises A and B loans totaling $100 million to RSB.
Mezzanine investment in securitization: The second project comprises an investment of about $30 million in credit enhancement to support a proposed securitization of consumer loans by RSB.
Both of the above transactions build on IFC’s existing successful investments in RSB, both equity and debt, and represent an effort by IFC to play a mobilization role to source funding for RSB, while limiting direct IFC funding to the Bank.
The Bank: RSB is a large-sized rapidly growing private Russian bank and one of the leading consumer finance banks in Russia, with a unique point-of-sale (POS) consumer finance business model. RSB sells its financial products and services, comprising POS loans, credit card loans, and car loans to consumers through partner retail shops. RSB started its operations in Moscow in 1999 and has since expanded into various regions of Russia. RSB now operates through its network of 21 branches in Moscow and other regions in Russia, 13 regional centers, 158 representative offices in other major Russian cities representing 93% of Russia’s population and over 21,500 POS. RSB’s strategic objective is to broaden its distribution network by extending its business to all of the major Russian regions and to provide a wider group of customers with a full range of consumer finance products.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Ms. Natasha Bogomolova
Investment Officer, CEU FM Portfolio Department, IFC
nbogomolova@ifc.org
Investment Officer, CEU FM Portfolio Department, IFC
nbogomolova@ifc.org