NBD is a small private-sector regional bank, established in 1992 in Nizhny Novgorod, Russia. The Bank strategic focus is on small and mid-sized enterprises.

NBD Bank is owned by its management (66.5%), the EBRD (25.0%) and Firebird Capital (8.5%). The participation of EBRD and a wide list of creditors such as DEG, FMO and IFC help to improve the Bank''s level of transparency and corporate governance relative to its peers.

The total Project Cost is estimated at 1,000,000,000 Russian rubles ($34,000,000).The proposed IFC investment is a 500 million Russian ruble A loan for IFC’s own account with 5 years maturity. NBD Bank committed to invest 500 million Russian rubles.

15.52 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.52
Equity

* These investment figures are indicative

The Project proceeds are targeted to reach SMEs in the most underserved and depressed areas in the central part of the Russian Federation, i.e. small towns and monotowns in Nizhny Novgorod, Ivanovo, Vladimir, Kirov, Penza regions, and Chuvash, Mari El republics and others, where NBD Bank operates.

The Project is expected to have a high developmental impact on account of
(a) providing access to finance to the Russian SME sector;
(b) contribute to new employment generation in small towns of the Central part of Russia.

IFC will add value to the Project by:
(a) providing local currency funding with longer tenors and better amortization patterns not readily available on the market;
(b) supporting the long standing IFC Partner at the times of market turbulence.

The proposed investment has been classified as Category FI according to IFC’s Environmental and Social Review Procedure. NBD Bank is an existing IFC client. Current IFC exposure to NBD Bank is $5 million, which consists of exposure under the SME and Energy Efficiency loan agreements. NBD Bank has developed and is implementing an Environmental and Social Management System (ESMS) and provided relevant documentation to IFC. Environmental staff has been appointed. The Bank will be required to continue implementation of its ESMS to ensure compliance of the activities financed with the IFC Exclusion List and Russian environmental and social laws and regulations. IFC reviewed the Bank’s labor policies in order to verify compliance with IFC’s Performance Standard 2: Labor and Working Conditions. CES will provide recommendations for NBD Bank’s labor policies enhancements. The Bank will be required to continue submission of the Annual Environmental Performance Reports (AEPRs) to IFC.