Uraltransbank, headquartered in Ekaterinburg, is to receive a $12 mln 10-year uncollateralized loan from the European Bank for Reconstruction and Development as part of the efforts to support the Russian banking sector, the lending institution said in a press release. An agreement on the provision of the first tranche ($7 mln) was signed on December 19 in Moscow.
“This is a first transaction since the crisis spilled over to Russia that aims to bolster the capital base of our banking clients. They’ve overcome the first wave of the crisis and funding will help the bank retain its positions on the market” — a press release said quoting EBRD’s Business Group Director, Financial Institutions and Private Equity, Nick Tesseyman.
The loan will form Uraltransbank’s level 2 capital. The plan is to make bullet repayment of the loan when it becomes due.
As the lending institution’s executive board chairman Valery Zavodov said, credits granted to micro, small and midsized enterprises account for 65% of the bank’s portfolio. “This area of business is of priority for both EBRD and our bank, providing guarantee amid the tense environment on the market thanks to the traditional resistance of this sector. EBRD’s long-term lending will provide Uraltransbank with substantial liquidity that the bank could tap to buoy this vitally important sector of the national economy” — he pointed out.
EBRD has been a shareholder of Uraltransbank, with a 25%+1 voting share interest, since 2004.
According to the data from news agency Banki.ru and Interfax-CEA, Urals Transport Bank’s net assets equal Rub 14.25 bln (141st place in Russia). The lending institution is a member of the national deposit insurance system.
