Summary of Proposed Investment
Project Number
25375
Company Name
Bank Russki Standart AO
Date SPI Disclosed
Aug 23, 2006
Country
Russian Federation
Industry
Financial Markets
Projected Board Date
Oct 5, 2006
Status
Completed
Sector
Commercial Banking - General
Department
Regional Industry FIG LAC & EUR
Environmental Category
C - No Impact
Previous Events
Approved : Nov 8, 2006
Signed : Nov 22, 2006
Invested : Nov 22, 2006
Project Description
The project comprises IFC’s first securitization facility of up to US$50 million in a series of asset-backed securitization transactions contemplated currently by the Russian financial institutions. The proposed project will be used as a credit enhancement to support two proposed cross-border securitizations planned by Russian Standard Bank (RSB or the Bank), a leading consumer finance bank in Russia. One transaction would involve the securitization of car loan assets and the other transaction would involve the securitization of RSB’s credit card receivables.
The proposed investment will represent an effort by IFC to support the development of the securitization market in Russia, which is an important ingredient in the continued growth of the private banking sector of Russia. In addition to the funding mobilization, IFC’s securitization facility will also aid in the development of the financial markets in Russia through:
- increased adoption of “best practice” credit scoring techniques,
- increased disclosure and transparency required by rating agencies and capital markets investors, and
- the dissemination of state-of-the-art financial engineering techniques.
The transaction builds on IFC’s existing successful investments in RSB and will help RSB to mobilize funding, while limiting direct IFC’s funding to the Bank, and on the experience in supporting two other Russian securitizations earlier in 2006.
The proposed investment will represent an effort by IFC to support the development of the securitization market in Russia, which is an important ingredient in the continued growth of the private banking sector of Russia. In addition to the funding mobilization, IFC’s securitization facility will also aid in the development of the financial markets in Russia through:
- increased adoption of “best practice” credit scoring techniques,
- increased disclosure and transparency required by rating agencies and capital markets investors, and
- the dissemination of state-of-the-art financial engineering techniques.
The transaction builds on IFC’s existing successful investments in RSB and will help RSB to mobilize funding, while limiting direct IFC’s funding to the Bank, and on the experience in supporting two other Russian securitizations earlier in 2006.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Russian Standard Bank
2/1, bld. 6, Spartakovskaya str.
105066 Moscow, Russia
E-mail: ir@bank.rs.ru
Telephone: +7 495 797 8402
Fax: +7 495 797 8440
2/1, bld. 6, Spartakovskaya str.
105066 Moscow, Russia
E-mail: ir@bank.rs.ru
Telephone: +7 495 797 8402
Fax: +7 495 797 8440
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
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster