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Bank Zenit 3 - Subordinated Loan II

Russia | Financial Institutions

Identification Code:: OP/11/0816
Total Operation Cost:: — USD
Maturity:: 120 months
Operation Status:: BSTDB Approved Amount – Approval Date

20.500.000 USD – 25 Feb 2011
: BSTDB Signed Amount – Signed Date

20.500.000 USD – 17 Jun 2011
: Status:
Completed
Description and Purpose of the Operation:: Subordinated Loan to Bank Zenit to serve as Tier 2 capital subsequently contributing to the strengthening of the Client's capital base and supporting its growth strategy. The facility will enable an existing client to complete its strategy for business expansion to the South of Russia and the Black Sea region in particular. Bank Zenit considers the business development in the Sochi region to be of paramount importance inter alia, the 2014 Winter Olympic Games with numerous urban related projects in the city, including but not limited to environmental preservation and safety.
Countries of Operation:: Russia (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Bank Zenit
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The facility will support the client to strengthen its capital adequacy and market position and achieve operational growth. It will also contribute to job creation, income generation and improved infrastructure benefiting individuals and companies in the South of Russia, a region of main focus for BSTDB.
Environmental Classification and Impact:: Screened as FI category. As an existing client of the Bank, the Borrower proved to have good understanding of BSTDB environmental requirements and has had integrated in its portfolio management basic environmental procedures. For the purpose of this transaction the Borrower is required to remain compliant with EHS legal requirements in effect in the country of operation, as well as strictly observe the BSTDB's Negative List of Products. The Borrower will need also to provide the Bank annual EHS performance reports.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org