As of January 1, 2009 the shareholding structure was the following: Mr. Igor Vladimirovich Kim owned 75% of total shares, Prosperity Capital Management (PCM) owned 25% of total shares.

The proposed project consists of an equity investment of up to $1.5 million in SRB, to purchase up to 20% of the voting shares of the Bank.

1.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	1.50

* These investment figures are indicative

SRB has Head Office and four outlets in Rostov-on-Don.

The project is expected to have a strong development impact. IFC would contribute to the consolidation of Russia’s highly fragmented banking sector and help to develop a stronger banking platform by supporting the expansion of SRB both through organic growth and through mergers and acquisitions process. The project would create a demonstration effect for other banks active in the Southern Federal District in terms of best practices in social and environmental management, because SRB will need to comply with IFC’s environmental and social management standards and establish the Social and Environmental Management System (“SEMS”).

Through nominating a Director to the Board of SRB, IFC would contribute the much needed global expertise in corporate governance, risk management, and SME and trade finance to a regional Russian bank, with the possibility of developing a longer term financing relationship with the Bank in these areas.

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 activities proposed to be supported with IFC financing 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.

Although part of an existing client group, SRB itself is a new IFC client. IFC reviewed the Bank''s Social & Environmental Management System (SEMS) in the context of this investment and will suggest supplemental actions to address gaps in the SEMS. IFC reviewed the Bank''s labor practices according to IFC''s Performance Standard 2: Labor and Working Conditions and will also be suggesting supplemental actions in this context.

Based on the Applicable Performance Requirements and SEMS 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 supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Revise existing labor policies and practices to demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions;
- Submit a periodic report to IFC.