Summary of Proposed Investment
Project Number
29370
Company Name
OTKRYTIE, OAO BANK
Date SPI Disclosed
May 13, 2010
Country
Russian Federation
Industry
Financial Markets
Projected Board Date
Jun 15, 2010
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jun 15, 2010
Signed : Aug 19, 2010
Invested : Apr 5, 2011
Project Description
The project will consist of a Tier I and/or Tier II equity investment to Commercial Bank Otkrytie (the “Bank”) to support its commercial banking strategy in the total amount of up to $100 million. The Bank’s strategy assumes merging with other commercial banking subsidiaries fully or partly owned by Financial Corporation Otkrytie (“FC”), including Petrovsky Bank and Investment Bank Otkrytie.
CB Otkrytie until 2009 worked under the name of Russian Bank for Development. It was established in 1992 and serviced primarily SMEs, mid-sized corporate and retails clients. The Bank was taken over by FC in November 2008 after the financial crisis hit the Russian banking sector. FC also owns 25% of Petrovsky Bank (which it has worked to restructure) and is currently in discussion with NOMOS Bank which owns another 25% of Petrovsky Bank to purchase its stake in Petrovsky. The remaining 50% of Petrovsky Bank is owned by Deposit Insurance Agency (“DIA”) which is prepared to sell its stake to FC after the merger. Additionally, FC owns 100% of Investment Bank Otkrytie. The FC intends to merge the three banks before the end of 2010.
CB Otkrytie until 2009 worked under the name of Russian Bank for Development. It was established in 1992 and serviced primarily SMEs, mid-sized corporate and retails clients. The Bank was taken over by FC in November 2008 after the financial crisis hit the Russian banking sector. FC also owns 25% of Petrovsky Bank (which it has worked to restructure) and is currently in discussion with NOMOS Bank which owns another 25% of Petrovsky Bank to purchase its stake in Petrovsky. The remaining 50% of Petrovsky Bank is owned by Deposit Insurance Agency (“DIA”) which is prepared to sell its stake to FC after the merger. Additionally, FC owns 100% of Investment Bank Otkrytie. The FC intends to merge the three banks before the end of 2010.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Vladimir Yu. Kourashev
Otkritie Bank
11, bldg. 13, Timura Frunze Str., Moscow, Russian Federation
Telephone: + 7 (495) 795 8863
Fax: +7 (495) 234 3237
Otkritie Bank
11, bldg. 13, Timura Frunze Str., Moscow, Russian Federation
Telephone: + 7 (495) 795 8863
Fax: +7 (495) 234 3237
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