Financed ProjectsSovcombank - Trade Finance Facility

Identification Code:

OP/17/0074

Total Operation Cost:

25.000.000

Maturity:

12 months

Operation Status:

Description and Purpose of the Operation:

Provision of USD 25 million Trade Finance Facility to Sovcombank, Russia. The Facility aims to support the trade finance activity of the Borrower. The proceeds shall be used exclusively for the purpose of extending short-term pre-shipment and/or post-shipment export and/or import financing to their customers in Russia eligible in accordance with the eligibility criteria set by the Bank.

Countries of Operation:

Russia (100,00 %)

Financial Product:

Trade Finance

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Sovcombank, Russia

Co-Financiers/Participants:

n/a

Guarantors/Sponsors:

n/a

Developmental and Regional Cooperation Impact:

The operation involves a revolving Trade Finance Facility 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.

Environmental Classification and Impact (summary):

The Borrower reported that it does not have any formal E&S management system integrated into its overall portfolio management. As part of the BSTDB loan portfolio it will be requested to develop a basic E&S credit risk analysis procedure and integrate it into the credit cycle. The system should allow the Borrower to: 1) ensure that all the sub-loans financed from BSTDB’s proceeds meet the Exclusion List, and the legal and regulatory requirements in effect in the host country; 2) identify sub-loans with potential high E&S risks and impacts, conduct their appropriate analysis, and provide appropriate mitigation measures; and 3) translate these measures as covenants into credit agreements.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org