By Marcus Williams.
An EBRD loan for Russia’s Transcapitalbank marks the first time an institution with a specific mandate to act as a socially responsible lender is participating as a co-financier to raise funds for a Russian borrower.
To date, the EBRD’s partners in such transactions have traditionally been commercial banks, according to a statement from the lender.
Bank im Bistum Essen a German cooperative bank, has taken up the entire $3m B loan raised by the EBRD as part of a $13m package for the medium-sized Russian bank.
This funding will be used to finance TCB’s lending to small and medium-sized enterprises (SME’s) using criteria worked out by the EBRD’s for its oldest and largest SME programme.
The EBRD has been a TCB shareholder since 2006 and now holds a 28.6 percent stake.
Sorry, comments are closed for this post.