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NBD Bank SME 4

Russia | Financial Institutions

Identification Code:: OP/13/0033
Total Operation Cost:: 8.000.000 USD
Maturity:: 24 months
Operation Status:: BSTDB Approved Amount – Approval Date

8.000.000 USD – 21 Jun 2014
: BSTDB Signed Amount – Signed Date

8.000.000 USD – 09 Jul 2014
: Status:
Completed
Description and Purpose of the Operation:: —
Countries of Operation:: Russia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Open Joint Stock Company NBD Bank is a universal financial institution that offers full scale of banking services to the legal entities, entrepreneurs and individuals. NBD Bank was founded in 1992 by largest industrial corporations of the Nizhny Novgorod Region for the purpose of financing of conversion programs. As of today the Bank occupies significant share of regional market dealing with SMEs on servicing of deposits and payments of businesses and individuals for carrying out of foreign trade transactions. Network of the Bank business units incorporates 24 offices in six Russian regions.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Project is expected to have modest albeit favorable economic benefits for the Russian economy, the most relevant being the tax revenue gains from economic activity, increase in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is uncertain because it is not yet known who the end recipients will be of the proceeds of the Bank’s loan, and how they will use it. To the extent exports are promoted that go to other BSEC countries, there would be the benefit of enhanced trade linkages.
Environmental Classification and Impact:: NBD Bank is a former Client of BSTDB and the experience gained under the previous SME lines in terms of environmental and social performance has been positive. The Borrower has instituted an environmental management system consistent with BSTDB requirements and which is considered commensurable with the risks and impacts associated with SME financing. The system has been integrated into the Client’s credit/investment appraisal and monitoring process and is fully functioning.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org