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.

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.

40.26 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.13
Equity	20.13

* These investment figures are indicative

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.

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.

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.

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.