Financed ProjectsBank Zenit 1-SME Financing.

Identification Code:

OP/07/0691

Total Operation Cost:

0

Maturity:

60 months

Operation Status:

Description and Purpose of the Operation:

Provision of a Bank to Bank Loan to Bank Zenit, Russia for SME financing purposes. The proceeds of the Loan shall be used by Bank Zenit exclusively for the purpose of providing SME sub-loans to local borrowers eligible in accordance with criteria agreed with BSTDB.

Countries of Operation:

Russia (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Bank Zenit is a private bank operating under general banking license and ranks 25 in the Russian banking system. The bank is active in the Moscow region and Republic of Tatarstan. Total assets exceed USD 7,2 billion, with loan portfolio of USD 4,8 billion, mostly corporate loans. Currently the operations of Bank Zenit are carried out through a large branch network with presence in 18 out of 85 regions in Russia. The bank operates 134 points of sale 18 of which are full scale branches. Bank Zenit's banking operations are divided into corporate banking, investment banking, private banking and retail banking segments. Bank Zenit benefits from Tatneft’s presence as a key shareholder. Tatneft is Russia's 6th largest oil company and is 35.9% owned by the government of Tatrstan Republic. The Bank is rated B by Fitch and Ba3 by Moody's with positive outlooks

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The BSTDB financing will contribute to the support currently provided to the Russian banking system by the government and IFIs proving the much- needed long-term financing. The proposed Facility is expected to contribute towards expanding of SME lending program of one of the leading Russian banks and through its branch network to increase the accessibility to funding of local companies which can not be otherwise accessed by BSTDB directly. The proposed Project would assist the Russian government's strategy to promote development of small and medium-sized enterprises in the country as one of the most promising segments of the private sector in Russia. The project will contribute to: 1) Economy diversification and development of non-oil industry sectors; 2) Job creation thus increasing living standard of the population; 3) Regional development through the branch network of Bank Zenit;

Environmental Classification and Impact (summary):

The Borrower is required to conduct its business in compliance with national and BSTDB environmental, health and safety requirements, including the Negative List of Products, as well as submit annual reports on environmental, health and safety performance.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org