SME Bank, IIB approve first joint lending transaction to support Russian SMEs

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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.

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