RSBF - KMB Bank - Equity

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 36571

Status Complete

Location

Russia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 36571

Status Complete

Location

Russia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

03 May 2006

Disclosure date

31 Mar 2006

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

(i) Participation in a proposed capital increase in KMB Bank.

(ii) Proposed provision of senior debt to KMB Bank for on-lending to private micro and small enterprises in the Russian Federation and for mortgage finance.

The proposed equity and debt funding will allow KMB Bank to meet the continued demand from Russian micro, small and medium-sized enterprises (MSMEs) for medium-term financing, an area which remains underserved by the Russian financial sector. This will enable the bank to increase its competitiveness in the local retail financial market and further diversify its customer base. In addition, the capital increase will allow KMB to develop its activities in the broader retail finance sector with the close involvement of the majority owner, Banca Intesa of Italy.

The Bank has several existing projects with KMB. The previous PSD was issued under DMT 6245: RSBF – KMB Bank in 1999 and later updated in 2003.

Transition Impact

Transition impact will be achieved through the strengthening of a highly competitive bank which will continue to focus on reaching smaller entrepreneurs who traditionally have little access to medium term funding. Further, the proposed project will ensure that small businesses are provided with more financial alternatives, and will thereby foster competition in the sector.

The Client

KMB Bank is a leading provider of finance to micro, small and medium sized enterprises across the Russian Federation. The bank was established by EBRD and a number of other investors in 1999 after the Russian financial crisis had severely affected the ability of the country’s financial sector to effectively provide funding to MSMEs. KMB currently operates via 8 branches and 47 sub-branches in 24 of Russia's regions, and since its creation has provided over 150,000 loans to Russian entrepreneurs for a cumulative volume of over USD 1.3 billion.

In September 2005 Banca Intesa of Italy purchased a majority stake in KMB Bank. EBRD remains a minority shareholder with 25%. Banca Intesa brings to KMB Bank considerable experience in retail and SME banking both in Italy and across Eastern Europe, and will spearhead KMB’s continued dynamic growth in the future.

EBRD Finance

Up to USD 25 million of proposed equity funding and up to USD 75 million of senior debt funding.

Project Cost

Up to USD 200 million.

Environmental Impact

KMB Bank currently complies and will continue to comply with EBRD’s Environmental Procedures for Small and Micro Loans, which include: compliance with applicable national environmental, health, safety and labour requirements; adherence to the Environmental Exclusion and Referral Lists; and submission of annual environmental reports to the Bank.

Technical Cooperation

EUR 7.4 mln. has previously been provided to KMB Bank by the European Commission for the expansion of KMB’s branch network and provision of MSE finance in selected Russian regions.

Company Contact

Reiner Mueller-Hanke,

Chief Executive Officer,

KMB Bank,
31 Shabolovka St.,
Building B,
115162 Moscow
Russia

T: +7 495 783 4457
F: +7 495 789 6827

Email: Mueller-Hanke_r@kmb.ru
Website: http://www.kmb.ru

Transition impact

ETI Score:75

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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