CEB is a subsidiary of “Credit Europe Bank NV”, which is registered and operates as a universal bank in the Netherlands. The latter is a subsidiary of “Credit Europe Group NV”, which is controlled by “FIBA Holding AS”, one of Turkey’s largest private financial conglomerates with estimated total assets exceeding $15 billion. The ultimate beneficiary is Mr. Husnu Ozyegin, who owns 99.9% of “FIBA Holding AS”.

The Project will consist of an IFC A Loan and a syndicated B Loan for a combined amount of up to $100 million; B Loan may be increased in case of oversubscription from syndication participants. The funds will be used to expand CEB’s loan portfolio, especially in the regions, and to grow its SME and retail loan portfolios. The EBRD may be joining the Project.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

CEB is headquartered in Moscow, but operates in more than 31 cities across 23 regions via 110 branches.

The Project is expected to have a demonstration impact as well as a developmental impact. The demonstration impact will be achieved by assisting a viable financial institution in accessing the syndication market and international investors in a challenging environment. IFC’s support will contribute to bring additional stability and diversification to CEB’s funding. On the developmental front, the Project will indirectly support the Russian SME sector, which suffers from a chronic shortage of funding options. This Project will also enable CEB to keep on growing its regional distribution channels and branch network, which in turn will generate new employment opportunities in regions where such opportunities are often limited.

     

The Project is expected to contribute to the following points:
Consolidation of a still fragile capital markets/syndication environment
Supporting the growth of SMEs and retail consumers via the financing extended by CEB
Supporting the economic development of the regions via CEB network expansion
Assisting in developing a more sustainable funding model for CEB

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Credit Europe Bank 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, and if needed to 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.