CEE Microfinance Holdings Cooperatief U.A. (through Amance Holding N.V.) purchased three companies of Opportunity International Network (including the Bank), providing financing to micro and small businesses. One of these companies, 100% of which shares were purchased by Amance Holding N.V., NOA Sh.A., became the owner of the 100% stake in the Bank.
CEE Microfinance Holdings Cooperatief U.A. is owned by:
- Balkan Financial Sector Equity Fund C.V., mixed equity fund, registered in Netherlands, investing primarily in Southern Europe-based financial services companies;
- Creation Investments Social Ventures Fund I, registered in the USA, an equity fund investing in microfinance companies globally.

The Project will consist of a straight senior loan of US$5 million with a tenor of up to 5 years. The loan will be denominated in Russian rubles.

3.62 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	3.62
Equity

* These investment figures are indicative

Forus is headquartered in Nizhny Novgorod. The Bank has 6 regional branches and 34 satellite offices based in 26 regions of Russia. Investments can be made throughout the branch network.

The development impact of the Project is expected to be high. The Bank already has a locally recognised franchise and a loyal customer base in servicing micro- and small businesses, including those in the remote regions, small towns and rural areas. This segment is underserved and especially lacks access to quality financial services, on both lending and savings sides.

1) IFC will provide the Bank with access to long-term funding, for on-lending to micro- and small businesses, which have limited access to such resources;
2) IFC will provide local currency financing, to match the Bank''s 100% on-lending in Russian Rubles and help manage its currency risk;
3) The loan will be accompanied by risk management products: cross-currency and interest rate swaps, which are not readily available in the interbank market for a bank of Forus'' size and profile. This will further enhance IFC role in imporving the Bank''s risk profile and risk management practices.

Forus Bank is an existing IFC client. The Bank has developed Social and Environmental Management System which was approved by senior management in October, 2010. Forus Bank has designated an SEMS Officer and submitted its AEPRs on time since 2006. In November 2010, IFC environmental specialists met with a number of Bank''s representatives and discussed implementation of the Bank’s E&S procedures. Last ESRR score (based on 2010 AEPR review) is F2 – Satisfactory (July 13, 2011). As a follow up to 2010 AEPR review, the client was asked to use new AEPR reporting format.

The proposed project consists of an IFC A Loan in local currency of up to $5 million equivalent to support its micro-lending operations in the European part of Russia. The proposed investment has been classified as Category FI. Forus Bank will be required to ensure compliance of the activities financed with the IFC Exclusion List and Russian environmental and social laws and regulations. The client will be required to continue implementation of its SEMS and continue submission of the Annual Environmental Performance Reports (AEPRs) to IFC.