OREANDA-NEWS. August 12, 2011. IFC, a member of the World Bank Group, and the European Bank for Reconstruction and Development, EBRD, have together raised USD 250 million for Russia’s Credit Europe Bank (CEB), including USD 150 million from commercial banks, which will enable CEB to expand access to finance for small and medium enterprises in Russia’s frontier regions.

In the transaction announced today, the EBRD and IFC each committed to a three-year loan of USD 50 million for their own account, while a group of commercial banks will provide one-year syndicated B-loan comprising of USD 75 million IFC B-loan and USD 75 million EBRD B-loan. The commercial lenders have the option to extend the terms one year, at their discretion. IFC and EBRD are the lenders of record for respective B-loans.

“IFC’s support of this transaction will enable CEB to expand access to finance for Russia’s small and medium enterprise sector, particularly in frontier regions where there is a chronic shortage of funding options,” said K. Aftab Ahmed, IFC Director of Financial Markets in Eastern and Southern Europe, Central Asia, Middle East and North Africa.  

This transaction demonstrates ongoing interest by investors to fund mid-size Russian banks despite the current uncertain economic conditions, and will help to strengthen Russia’s capital markets and syndication environment. Commercial banks in the IFC B-loan are as follows:

Bookrunners and Mandated Lead Arrangers:  Raiffeisen Bank International AG, Standard Bank Plc, and VTB Bank (Deutschland) AG.

Mandated Lead Arranger: Isbank GmbH.

Senior Lead Arranger: AKA Ausfuhrkredit-Gesellschaft m.b.H., Citibank, Demir-Halk Bank (Nederland) N.V., PPF banka a.s., VakifBank International AG, and Yapi Kredi Bank Nederland NV.

Lead Arranger: DenizBank AG.

Co-arranger: Banque de Commerce et de Placements S.A. and Turkiye S?nai Kalk?nma Bankas? A.S.

Manager: Alternatifbank A. S., Atlantic Forfaitierungs AG, and Wells Fargo Bank, National Association.

CEB operates in 23 of Russia’s 83 regions and has 2.5 million private retail customers, including 10,000 small businesses and over 900 corporate clients. CEB is owned by Credit Europe Bank N.V., part of the Turkish conglomerate Fiba Group, and ranks 45th among Russian banks in terms of assets.