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EBRD To Acquire a 15% Equity Stake in SDM-Bank


EBRD To Acquire a 15% Equity Stake in SDM-Bank


Moscow, September 15th, 2010

Yesterday, the Board of Directors of the European Bank for Reconstruction and Development approved a primary equity investment in SDM-Bank, and a provision of a RUB 375mn unsecured credit facility. EBRD’s primary equity investment will represent 15% of SDM-Bank’s share capital after the share issuance. 

On September 14th, 2010 EBRD’s Board of Directors approved a primary equity investment in SDM-Bank and a provision of an unsecured credit facility. After the subscription to SDM-Bank’s primary equity, EBRD’s shareholding will represent 15% of SDM-Bank’s share capital.

EBRD and SDM-Bank expect to complete the transaction during the first quarter of 2011.

EBRD’s investment in SDM-Bank’s equity represents EBRD’s first Russian financial sector equity investment since the start of the 2008 financial crisis.

Within a robust strategic cooperation framework, EBRD is also providing unsecured senior loans. The RUB 225mn five-year SME credit facility is aimed at strengthening and growing SME lending. The RUB 150mn micro-credit facility is designed to stimulate and develop micro-credit lending in Russia. The Russia Small Business Fund (RSBF) is partly financing the micro-credit facility.

JSC SDM-Bank was established in 1991. The bank has the General license of the Bank of Russia No 1637. The bank participates in the Deposit Insurance System since 2004.

SDM-Bank aims to deliver best-in-class financial services across three principal business lines:

The Bank has 13 full-service branches and 26 corporate offices in Moscow; 8 regional branches in Perm, Voronezh, Saint-Petersburg, Krasnoyarsk, Tver, Nizhniy Novgorod, Omsk and Rostov-on-Don and representative office in London.

As of July 1, 2010 SDM-Bank’s Net Assets were RUB 20.39 bn., Capital was RUB 2.24 bn, Balance Sheet profit was RUB 256.39mn. SDM-Bank’s number of corporate accounts exceeded 21.7 thousand and retail accounts exceeded 132.4 thousand.

In June 2010 Fitch upgraded SDM-Bank’s Long term foreign currency rating from “B-“ to “B” and national long term rating from “BB-(rus)” to “BBB(rus)”. All ratings have “Stable” outlook.

European Bank for Reconstruction and Development (EBRD) is an international financial organization that funds projects in 29 countries from Central Europe to Central Asia. EBRD was founded in 1991 with participation of 61 Governments, the European Union and European Investment Bank. EBRD supports entrepreneurship and the transition to an open and democratic market economy, by investing primarily in the private sector whose needs cannot be met by the market.

Fund of Small Business Support (FSBS) was established by EBRD in 1994 with the support of the G7 countries and Switzerland for joint investments with EBRD of SME loan projects and technical assistance to banks-participants of micro-credit programs.