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TransKapitalbank - SME financing

Russia | Financial Institutions

Identification Code:: OP/16/0009
Total Operation Cost:: 20.000.000 EUR
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

20.000.000 EUR – 18 Nov 2016
: BSTDB Signed Amount – Signed Date

20.000.000 EUR – 03 Feb 2017
: Status:
Completed
Description and Purpose of the Operation:: Provision of EUR 20 million loan to Transkapitalbank for SME financing purposes. The proceeds of the Loan shall be used by the Borrower exclusively for the purpose of providing SME sub-loans to eligible clients in accordance with the eligibility criteria as agreed with the Bank.
Countries of Operation:: Russia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Transkapitalbank
Co-Financers/Participants:: N/A
Guarantors/Sponsors:: N/A
Developmental and Regional Cooperation Impact:: The operation is expected to have modest but favorable economic benefits for the Russian economy, the most relevant being additional tax revenue gains from increased economic activity under the additional amount provided. In addition, the amount provided will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. Due to the Transkapitalbank's well-established market presence and strong commitment to develop SME lending, the Loan will represent an excellent mechanism for BSTDB to support development and expansion of small and medium sized businesses and entrepreneurs (thus to contribute to the SME development in Russia) which cannot be otherwise accessed by BSTDB directly. The regional cooperation element is similarly expected to be modest. Other BSTDB countries are important trade partners for Russia so to the extent SMEs benefiting from financing from the operation engage in export activities, there will be some regional cooperation benefits.
Environmental Classification and Impact:: Transkapitalbank has a functioning E&S management system consisting of E&S Policy, procedures and guidelines and is compliant with international best practices for FIs, as well as the relevant requirements of BSTDB. The E&S management system has been approved by its Board in 2013 and is fully integrated in the general portfolio management. For the purpose of this operation the Borrower will be required to 1) remain compliant with national E&S requirements in effect in Russian Federation and the Bank's E&S requirements stipulated in the E&S Policy; 2) submit annual E&S performance reports, and 3) follow the BSTDB E&S Exclusion List.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org