The RBC Venture will be sponsored by IFC and managed by IFC Asset Management Company (“AMC”). Foreign and domestic government and quasi-governmental entities, sovereign wealth funds and other private sector institution or other investors are expected to invest alongside IFC.

IFC proposes to invest equity for its own account up to $250 million. The RBC Venture will primarily invest in equity of commercial banks and other investment instruments qualifying as capital for regulatory purposes.

250.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	250.0

* These investment figures are indicative

The RBC Venture will be domiciled in an IFC member country. Investments will be made throughout Russia, with particular attention to the development of regional banking services.

The RBC Venture is expected to deliver strong development impact via two key areas:
a) providing critically needed equity/equity-related funding to improve and stabilize the capital base of the second-tier of Russian banks, thereby speeding up recovery and job creation in the overall economy, specifically in the less financially accessible Russian regions as they emerge from the on-going crisis; and,
b) expected "demonstration effect" as the investment potential of second-tier and regional Russian banks is highlighted and thereby catalyzing further private-sector investments into an undervalued future growth area for the Russian economy.     

There are few potential stable sources of capital for second-tier Russian banks in the aftermath of the crisis and IFC is uniquely positioned to gather financial resources from both the public and private sectors to enable and encourage the development of a more efficient financial infrastructure in Russia. The investee banks will benefit from having access to IFC''s global industry expertise and advisory skills in critical and selected functional and technical areas which are now lacking in the second-tier of banks. Investors will benefit from IFC''s experience in sourcing and transparently evaluating investments and handling portfolio management. IFC will also contribute to the sustainability of the RBC Venture by improving corporate governance as well as environmental and social standards which will be applied at the investee company level.     

The project has been classified category FI according to IFC’s Environmental and Social Review Procedure. All investments by the RBC Venture will follow IFC''s Sustainability Policy and Performance Standards and will be reviewed according to IFC Environmental and Social Review Procedure. The RBC Venture will be managed by IFC''s Asset Management Company (AMC). If the AMC does not delegate appraisal and portfolio management to IFC, the AMC will need to establish its own capacity to undertake environmental and social due diligence and monitoring of investee banks by following the same requirements. For any investment considered by the RBC Venture, the RBC Venture or the AMC will need to assess investee banks'' portfolio risks, including exposure to activities on the IFC Exclusion List, and capacity to manage such risks. In the case of sizeable exposure to the IFC excluded activities, the RBC Venture will need to work with investee banks to implement plans to reduce such exposure over a reasonable period of time.