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Promsvyazbank-Loan for Mortgage Finance

Russia | Financial Institutions

Identification Code:: OP/14/0009
Total Operation Cost:: 40.000.000 USD
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

40.000.000 USD – 02 Jun 2014
: BSTDB Signed Amount – Signed Date

40.000.000 USD – 10 Jul 2014
: Status:
Completed
Description and Purpose of the Operation:: USD 40 million loan amount will be utilized by Promsvyazbank for mortgage financing purposes. The proceeds of the Loan shall be used exclusively for the purpose of providing mortgage sub-loans to eligible clients in accordance with the agreed Mortgage Lending Criteria. The Loan aims to contribute towards expanding of the Mortgage lending program of one of the leading Russian banks and thus contributing to the development of the mortgage finance products in Russia.
Countries of Operation:: Russia (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Promsvyazbank, Russia
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: Developmental impact of the loan will be demonstrated mainly by increasing the accessibility of the population to affordable long-term mortgage loans; contributing to the improvement of the living conditions, supporting the Russian Government's initiatives and increasing the employment opportunities in the construction sector.
Environmental Classification and Impact:: Promsvyazbank is expected to adopt and implement basic EHS procedures satisfactory to BSTDB and to integrate these as fully as possible into its credit/investment appraisal and monitoring process; no proceeds will be used to finance any activities contained in the BSTDB Negative List of Products; will require sub-projects to comply, at a minimum, with the environmental regulations and standards of the Russian Federation; and will submit to the Bank annual EHS performance reports.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org