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Sovcombank - Trade Finance (RUB)

Russia | Financial Institutions

Identification Code:: OP/19/0039
Total Operation Cost:: 2.500.000.000 RUB
Maturity:: 12 months
Operation Status:: BSTDB Approved Amount – Approval Date

2.500.000.000 RUB – 15 Jun 2019
: BSTDB Signed Amount – Signed Date

2.500.000.000 RUB – 06 Aug 2019
: Status:
Completed
Description and Purpose of the Operation:: Provision of RUB 2.5 billion Trade Finance Facility to Sovcombank, Russia. The combined Trade Finance Facility will be used to advance sub-loans to local exporters as well as to provide short-term financing to importers for importing goods to Russia.
Countries of Operation:: Russia (100,00%)
Financial Product:: Trade Finance
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Sovcombank is a Russian universal bank with principal business activity retail and corporate banking as well as investment banking services. This includes, but is not limited to: deposit taking and issuing commercial loans denominated in Russian rubles and foreign currencies; providing financial services, including investment banking services; trading securities and derivative financial instruments. It owns one of the largest in Russian Federation digital platforms enabling access to public procurement for 350 thousand companies.
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: The operation involves a local currency loan to the bank for Trade Finance purposes that is expected to have modest but favorable economic benefits for the Russian economy. The most relevant of these is the additional tax revenue gains from increased economic activity and increased exports. In addition, the financing will contribute to increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is likely to be positive in case the beneficiary of the facility exports to BSTDB member countries.
Environmental Classification and Impact:: Category FI As part of the BSTDB loan portfolio Sovcombank will be requested to develop a basic E&S credit risk analysis procedure and integrate it into the credit cycle.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org