MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considering $85m Facility for DeltaCredit Bank of Russia for Residential Mortgage Loans

The UK-based European Bank for Reconstruction and Development (EBRD) recently revealed the pending approval of a finance facility of up to the equivalent of USD 85 million disbursed in a mix of USD and RUB to DeltaCredit Bank, a commercial bank in Russia that specializes in mortgages for residential housing loans. The loan is intended to expand the Russian mortgage market by reaching new clients and regions in the country and to “promote competition and best practices in mortgage lending.” If approved, EBRD would not provide technical assistance in conjunction with this loan [1].

As of 2011, DeltaCredit Bank reported total assets of RUB 67.4 billion (USD 2.1 billion). Additional financial data on the bank, such as gross loan portfolio, amount of deposits, number of clients, return on assets and return on equity, are not available [2].

In 2012, EBRD invested EUR 2.6 billion (USD 3.4 billion) in 67 projects in Russia [3]. During the same year, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 34 countries.

By Jennifer Young, Research Associate

About DeltaCredit Bank of Russia
DeltaCredit Bank is a commercial bank in Russia specializing in mortgage lending. The bank also offers deposit insurance and credit guarantee services to retail customers. As of 2011, DeltaCredit Bank reported total assets of RUB 67.4 billion (USD 2.1 billion). Additional financial data such as, gross loan portfolio, amount of deposits, number of clients, return on assets and return on equity, are not available.

About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

Sources and Additional Resources

[1] European Bank for Reconstruction and Development Project Summary Documents,” DeltaCredit Mortgage Loan,” http://www.ebrd.com/pages/project/psd/2013/44877.shtml

[2] DeltaCredit Bank Website, Financials, http://www.deltacredit.ru/investor/creditratings/

[3] European Bank for Reconstruction and Development Country Factsheets, “Russia,” http://www.ebrd.com/downloads/research/factsheets/russia.pdf

MicroCapital Story, June 18, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Guarantee $664m to Vnesheconom Bank (VEB) for Financing Micro-, Small, Medium-Sized Enterprises (MSMEs),” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-guarantee-664m-to-vnesheconom-bank-veb-for-financing-micro-small-medium-sized-enterprises-msmes/

MicroCapital Story, May 2, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Launches $100m Credit Line for Russian Residential Energy Efficiency Improvements, Center-Invest Bank Borrows $24m,” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-launches-100m-credit-line-for-russian-residential-energy-efficiency-improvements-center-invest-bank-borrows-24m/

MicroCapital Story, March 25, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Plans to Invest $20m in Da Vinci Private Equity Fund II for Financial Infrastructure SMEs in Commonwealth of Independent States,” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-plans-to-invest-20m-in-da-vinci-private-equity-fund-ii-for-financial-infrastructure-smes-in-commonwealth-of-independent-states/

MicroCapital Story, August 23, 2011, ”MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), German’s Bank im Bistum Essen Co-finance $13m Loan for Russia’s Transcapitalbank,” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-german%e2%80%99s-bank-im-bistum-essen-co-finance-13m-loan-for-russia%e2%80%99s-transcapitalbank/

MicroCapital Universe Profile: DeltaCredit Bank of Russia, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DeltaCredit+Bank+of+Russia

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

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