The Bank is 97.09% owned by Mr. Alexey Mordashov, a Russian businessman who is the majority shareholder of a metallurgical plant Severstal and has business interests in other industries, such as power machinery, tourism, etc.

The proposed Project represents a finance package comprising of (i) an equity investment of up to 10% voting share ownership in Metcombank; (ii) a senior loan of up to Russian Rubles 300 million to support the Bank’s expansion of SME business; and (iii) a trade finance line of up to $10 million to strengthen the Bank’s trade finance business.

10.71 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.71
Equity

* These investment figures are indicative

Domiciled in Cherepovets, Metcombank operates 11 branches and more than 350 points of sale in 9 cities of Russia.

The project is expected to have positive impact on private sector development through supporting the growth of a financial institution whose strategy is built on servicing clients in the less developed regions of Russia with a special focus on lending to retail and SME customers.

By partnering with METCOMBANK at equity level IFC would help the Bank implement its growth strategy based on: (i) IFC`s good local knowledge and experiences in working with Russian investee banks; (ii) IFC`s ability to both attract strategic investors through its international reputation and networks and increase the Bank's market appeal; and (iii) IFC`s ability to provide local currency financing with longer maturities and better amortization patterns.

The proposed investment has been classified as Category FI. Metcombank will be required to ensure compliance of the activities financed with the IFC Exclusion List, Russian environmental and social laws and regulations, and the IFC Performance Standards, if applicable. CES appraisal will focus on the client’s portfolio risk and the Bank’s existing capacity to manage environmental and social risks. In addition, due diligence will be carried out on the Bank’s HR policies and practices to determine compliance with IFC''s Performance Standard 2: Labor and Working Conditions. If needed, CES will provide recommendations to address any gaps. Final applicable requirements will be determined once IFC reviews the client’s portfolio, labor standards, and existing E&S capacity. The client will be required to develop a Social and Environmental Management System (SEMS), nominate staff responsible for SEMS implementation, and submit Annual Environmental Performance Reports (AEPRs) to IFC.