CREDIT BANK OF MOSCOW is a well-established privately-owned mid-sized universal Bank and has been a reliable client of IFC since 2004. The Bank currently operates in Moscow and the Moscow region with a network of 74 points of sale, over 600 ATMs and over 4,000 payment terminals. The Bank’s sole shareholder is Mr. Roman Avdeev.

The total project cost is estimated at RUB 2.90 billion (approximately US$ 100 million), consisting of equity from IFC’s own account.

98.57 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	98.57

* These investment figures are indicative

CREDIT BANK OF MOSCOW is headquartered in Moscow and operates in Moscow and the Moscow region. The Bank’s network consists of approximately 60 branches, 14 cash offices, 600 ATMs, and over 4,000 payment terminals. CBM’s clients are well diversified, ranging from small local retailers to larger companies operating nationwide. Investments can be made throughout the country.

The proposed investment seeks to (i) help Credit Bank of Moscow grow and serve its small-and-medium enterprise client base; (ii) expand its operations to new regions outside of Moscow; (iii) strengthen and diversify its capital base; (iv) mobilize additional investors to enter the Bank''s capital in light of a future initial public offering (IPO); and (v) promote best practices in terms of corporate governance and business and risk management, enabling the Bank to become one of the key platforms for sector consolidation.

The proposed project will help improve the depth and stability of the local financial sector by supporting a major emerging private bank. IFC''s presence will (i) offer Credit Bank of Moscow a long term partnership needed to operate in a challenging post-crisis environment; (ii) provide additional capital allowing the bank to expand its business and cover additional regions in Russia; and (iii) help to diversify and institutionalize the Bank''s shareholding structure in view of attracting new capital over the coming 3 to 5 years.

The proposed investment has been classified as Category FI according to IFC’s Environmental and Social Review Procedure. CREDIT BANK OF MOSCOW is an existing IFC client. CBM has developed and is implementing an Environmental and Social Management System (ESMS) and appointed environmental staff. For this equity investment project the client will be required to screen all loans against the IFC Exclusion List, the Russian E&S laws and regulations, and the IFC Performance Standards. CES environmental specialists will work with the client to enhance CBM’s E&S capacity and to apply all applicable requirements to entire portfolio. E&S specialists conducted a follow-up site supervision visit in November, 2011 focusing on portfolio review. Key findings were communicated to the client. IFC reviewed CBM’s labor policies in order to verify compliance with IFC’s Performance Standard 2: Labor and Working Conditions. CES will provide recommendations for CBM’s labor policies enhancements. The client will be required to continue submission of the Annual Environmental Performance Reports (AEPRs) to IFC