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MDM Bank

Russia | Financial Institutions

Identification Code:: OP/07/0677
Total Operation Cost:: — USD
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

36.000.000 USD – 01 Dec 2007
: BSTDB Signed Amount – Signed Date

36.000.000 USD – 03 Mar 2008
: Status:
Completed
Description and Purpose of the Operation:: Provision of a Bank to Bank Loan to MDM Bank, Russia for mortgage financing purposes. The proceeds of the Loan shall be used by MDM Bank exclusively for the purpose of providing mortgage sub-loans to local borrowers eligible in accordance with criteria agreed with BSTDB.
Countries of Operation:: Russia (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: MDM Bank (former URSA Bank) was established in 2006 and operates as a universal bank providing services to corporates, SMEs and retail sectors.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Mortgage credit line to MDM Bank will support the Borrower in developing residential mortgage lending program and improving access of the Russian population to affordable funding to improve their living conditions.
Environmental Classification and Impact:: Residential mortgage financing is associated with a number of specific environmental risks related to safety of property to be financed such as site contamination, use of hazardous materials in construction, risk of flooding, land sliding, seismic activity and compliance with the applicable national construction and environmental standards and regulations. The Borrower shall be required to take into consideration these issues when financing residential property as part of the standard mortgage loan assessment procedure as well as observe the BSTDB Environmental Exclusion List and Negative List of Products and comply with the environmental regulations and standards of the Russian Federation in its lending activities.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org