The main shareholders and their percentage of voting stock they hold are:

- Region - 25.86%
- EBRD - 25.00%
- Delta - 19.99%
- Sharonov A.G. - 17.40%
- Yenisey - 8.57%

The bank is independent from large financial industrial groups which dominate large parts of the Russian economy.

The total project cost is estimated at up to $15 million for IFC’s own account and comprises of:

- a credit line of up to $7 million to support the continued demand for credit from SMEs;
- a credit line of up to $8 million to work with NBD to introduce energy efficiency loans to corporates in the Volga region.

7.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.0
Equity

* These investment figures are indicative

The Bank is located in Nizhny Novgorod, Russian Federation and has 17 branches, of which 15 are located throughout Nizhny Novgorod region, and 2 in the capitals of neighboring regions 1 in Ivanovo and 1 in Cheboksary.

The project is expected to contribute to the promotion of Russia Sustainable Energy Finance Program and to support the development of a regional bank active in the SME segment which are IFC’s strategic priorities in Russia. This expected development impacts from this project are as follows:

- supporting development of a well-capitalized and well-managed privately-controlled bank such as NBD which aspire/adhere to international standards of risk management and corporate governance and providing it with support in the area of new product development and implementation (EE component);
- supporting provision of term funding to SMEs as the Bank clearly is unable to mobilize funding for tenors beyond 2 years from commercial sources;
- promoting IFC’s EE product in the region of Nizhny Novgorod and producing a demonstration effect for other Russian banks and entities; and
- testing IFC’s variable rate pure Russian Rouble loan for the first time in Russia.

IFC’s EE Program with its substantial technical assistance component will enable NBD and its clients to:

- unleash the potential of energy efficiency projects;
- leverage from provision of guidelines that ensure that projects are environmentally and socially sustainable; and
- receive project structuring expertise: technical, economic, financial, legal and environmental consulting.

The SME sector remains underserved in Russia, as larger banks shy away from the smaller clients in pursuit of large corporates. NBD remains among the few regional banks with technical capacity and experience to effectively and efficiently serve this segment. In this respect, the SME credit line will:

- enable NBD to provide longer term funding to its SME clients,
- support one of the leading regional institutions specializing in SMEs, and
- strengthen the Bank’s operational capacity.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the FI portfolio, and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable 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.

While NBD is an existing client, as this project follows IFC''s revised Environmental and Social Review Procedure IFC will also review, if required, the capacity of NBD 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, NBD 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 supported by IFC financing are in compliance with the Applicable Requirements;
- Continue to submit periodic reports to IFC.