MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Lends $47m to Orient Express Bank of Russia to Support Energy Efficient Investments, Agriculture

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, has announced that it has disbursed three loans in local currency equivalent to EUR 34 million (USD 46.5 million) to Orient Express Bank (OEB), a private commercial bank in Russia [1]. Of the three, two loans worth a total of EUR 27 million (USD 37 million) have been made under EBRD’s Russian Sustainable Energy and Carbon Finance Facility (RUSEFF), a credit facility aimed at energy saving and renewable energy investments, and will be used to modernize residential, industrial and commercial buildings to be more energy efficient. The remaining EUR 7 million (USD 9.6 million), made under EBRD’s Russia Small Business Fund (RSBF), will be used to increase financial inclusion by on-lending to family-owned and small-scale farms.

As of early 2012, OEB reported total assets of RUB 222 billion (USD 6.4 billion), approximately 3 million clients and 586 branches throughout Russia [2].

In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

By Nisha Koul, Research Associate

About Orient Express Bank (OEB): Orient Express Bank was established in Russia in 1991 and offers retail, mortgage and automobile loans; diversified credit programs; and other commercial banking services. As of early 2012, OEB reported total assets of RUB 222 billion (USD 6.4 billion), approximately 3 million clients and 586 branches throughout Russia.

About European Bank for Reconstruction and Development (EBRD): 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 it 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] EBRD News, “EBRD loan to Russia’s Orient Express Bank,” http://www.ebrd.com/pages/news/press/2013/131211a.shtml

[2] Orient Express Bank, Financial Statements, December 2012, http://www.express-bank.ru/sites/default/files/docs/about/disclosure/accounting/OEB-IFRS-2012-Eng-final-signed.pdf

MicroCapital Story, November 14, 2013, “European Bank for Reconstruction and Development (EBRD) Issues $12.5m in Local Currency Loans to Armenia’s Agricultural Cooperative Bank of Armenia-Credit Agricole Bank (ACBA) to Support Micro-, Small and Medium-Sized Enterprises (MSMEs), Energy Efficient Investments, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-issues-12-5m-in-local-currency-loans-to-armenias-agricultural-cooperative-bank-of-armenia-credit-agricole-bank-ac/

MicroCapital Story, May 21, 2013, “European Bank for Reconstruction and Development (EBRD) Loans $80m to Turkey’s Vakiflar Bankasi (Vakifbank) for SME Energy-Efficiency Projects,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-80m-to-turkeys-vakiflar-bankasi-vakifbank-for-sme-energy-efficiency-projects/

MicroCapital Story, December 30, 2010, “European Bank for Reconstruction and Development (EBRD) Loans $90m to Patria Credit of Romania and Orient Express of Russia for Microfinance and Small Business Lending,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-90m-to-patria-credit-of-romania-and-orient-express-of-russia-for-microfinance-and-small-business-lending/

MicroCapital Universe Profile, Orient Express Bank (OEB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Orient+Express+Bank

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

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