Russian Bank for Small and Medium Enterprises Support (SME Bank) and the International Investment Bank (IIB) closed their first jointly-arranged lending transaction to support Russian SMEs, with IIB issuing a loan guarantee of RUB 313.7 M for a credit facility provided by SME Bank to NBD-Bank in Nizhny Novgorod, Russia.
The cooperation between the institutions started in 2013 when IIB provided funding to SME Bank for SME support purposes. The current transaction marks a milestone in their fruitful relationship. For the first time, the two banks jointly structured a loan for a Russian financial institution. In addition, SME Bank, for the first time, has involved an international development institution as a guarantor while IIB issued its first ever guarantee for SME support. The new cooperation opens additional opportunities to increase lending to Russian SMEs in the most important area of long-term investments support.
Funds provided to NBD-Bank under the transaction will be on-lent to SMEs in the Volga River region. Among the ultimate borrowers are manufacturing and service enterprises from various industries. The loans will have tenors of up to 5 years and will be used for capital expenditure purposes.
Joint-Stock Company Russian Bank for Small and Medium Enterprises Support (JSC SME Bank) https://www.mspbank.ru/en was established in 1999. SME Bank is wholly owned by the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank). The bank is the operator of the government support programme for small and medium-sized enterprises since 2004 and provides resources to SMEs across Russia.
International Investment Bank (IIB) https://www.iib.int/en is a multilateral development institution founded in 1970. The current nine members of the Bank are Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam. The IIB invests into projects benefiting the economies of its member-states, fostering economic cooperation between them and focuses in particular on the support for SMEs. The Bank has undergone major modernization since late 2012 and has renewed its investment and credit policies.