The Project will consist of a Senior Loan and equity investment to First United Bank, or Pervobank (the “Bank”),a the leading bank in Samara and the Samara oblast (the Volga region) in the total amount of up to $50 million. Pervobank was formed in 2006 as a result of a merger of two local banks – Nova Bank owned by NOVATEK and Samara Credit owned by Volgaburmash, the leading producer of drilling bits in Russia. Following the merger of two effectively captive banks, a new strategy was developed, aimed at transforming Pervobank into an independent regional bank. Currently, the Bank is ranked 72nd by capital and 81st by total assets in Russia. In the Samara region, it is the largest bank by total assets and capital with the exception of Rusfinance, which is a consumer lending subsidiary of Societe Generale and is not exactly a regional bank. The Bank targets SMEs, mid-size corporates, and retail clients. Pervobank’s current strategy concentrates primarily on increasing its SME lending (over 50% of the Bank’s loan portfolio as of end-2009 was represented by SME loans). The IFC loan would broaden the Bank’s long-term funding base and would be used for expansion of its financing of micro and small entrepreneurs in the regions. In addition, the proposed project will have an energy efficiency component, which will help the Bank introduce and develop this new strategically important loan product. As part of the project, IFC may also consider providing up to $20 million in equity to support the Bank’s strategy and assist in its expansion.