The Absolut Bank strengthens its leadership in the Russian market by arranging
financing for its customers’ projects under credit facilities offered
by such institutions as the European Bank of Reconstruction and Development
(EBRD), the International Finance Corporation (IFC), the German
Credit Institute for reconstruction of economy (KFW), the Nordic Investment
Bank (NIB), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the
Black Sea Trade Development Bank (BSTD). This form of financing enables
the Absolut Bank to offer its customers competitive financial services,
to keep its assets and liabilities well-balanced and raise considerable
mid-term funds abroad to efficiently invest them into developing its customers’
businesses.
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February 2007
International Financial Corporation (IFC) increased Absolut Bank’s
limit by USD 30 mio under IFC’s Global Trade Facilitation Program.
In accordance with terms of the agreement the extension of the
limit will be executed in two stages. In first stage the limit
will be doubled from USD 10 mio up to USD 20 mio, and after current
capital increase procedures are finalized, the total limit will
be set at USD 40 mio. The recent volume of guarantees provided
by IFC to Absolut Bank was USD 10 mio.
In 2006 under GTFP IFC Absolut Bank, having USD 10 mio limit,
executed a row of transactions with the total volume of USD 13,5
mio. The trade finance portfolio calculated on the end of 2006
was more than USD 750 mio. By the number of transactions Absolut
Banks keeps its position among three leaders of this market. Absolut
Bank is also actively carrying on cooperation with such sizeable
financial institution as BSTDB, EBRD, KfW, DEG and others.
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December 2006
European Bank for Reconstruction and Development and Absolut Bank signed USD 10 mio Loan Agreement under EBRD’s Russian Small Business Programme (RSBP).
US 8 mio is financed by EBRD’s own resources and US 2 mio - by Russian Small Business Fund, formed by G-7 countries. The tenor of the Loan is 3 years.
All the funds under this agreement will be used for small business crediting.
EBRD’s Russian Small Business Programme is a US 300 mio facility, arranged for the purpose of financing Russian small private sector development. One half of RSBP is financed by EBRD and another - by Governments of G-7 countries, the Donor part of funding comes from G7 countries and Switzerland and further support is being provided by the EU funding in the form of technical assistace funds.
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November 2006
Absolut Bank and European Bank for Reconstruction and Development
signed USD 120 million A+B Syndicated Loan Agreement in Moscow. EBRD
is the Mandated Lead Arranger and the Lender of USD 40 million part
“A” of this facility. The tenor of a Loan under part “A” is 36 months
and under part “B” – 18 months with extension option up to 36 months.
The interest rate for the part “B” is 1,95% plus Libor. The Proceeds
will be used for AB loan portfolio growth funding.
Absolut Bank concluded a Loan Agreement with Black Sea Trade and Development
Bank (BSTDB) for an aggregate principal amount of USD 15 million and
6 year tenor. The proceeds of the loan will be used to originate and/or
acquire mortgage sub-loans to finance the purchase of residential property
in Russia by individuals.
Within the framework of the Trade Facilitation Programme EBRD increased
the credit limit on Absolut Bank from USD 50 million up to USD 100 million.
Trade Facilitation Programme allows Absolut Bank to establish new relations
with financial institutions all over the world.
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October 2006
Absolut Bank and Nordic Investment Bank (member of The Club of Institutions
of the European Union Specialising in Long Term Credit and International
Capital Market Association) signed EUR 10 million Loan Agreement with
Absolut Bank. The credit line with 5 year tenor. will be used for financing
of Absolut Bank’s clients foreign activities.
Absolut Bank attracted US$ 20 million loan from National City Bank.
The loan granted with 5 year tenor was guaranteed by OPIC (US state
corporation for private investments abroad). Received funds will be
channeled to developing priority-oriented retail products, among which
are credits to individuals in terms of different programmes such as
car loans, plastic cards, etc .
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August 2006
Absolut Bank and DEG signed the Subordinated Loan Agreement. According
to this Agreement DEG provided USD 20 million to increase Absolut Bank’s
Tier II Capital. The maturity of the Loan is 8 years including 5 year
grace period.
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July 2006
Absolut Bank signed the Mandate Letter under the IFC’s Subordinated
Loan Agreement. According to this Agreement IFC will provide USD 30
million to increase Absolut Bank’s Tier II Capital. The maturity of
the Loan is 7 years. Also according to this Mandate Letter IFC will
provide Absolut Bank with USD 5 million senior loan to finance energy
efficiency projects. The maturity of the senior loan is 5 years with
a 2 year grace period.
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October 2005
The German Credit Institute for reconstruction of economy (KfW) and
Absolut Bank signed the Loan Agreement to facilitate the Russian SME
Lending Program. According to this Agreement KfW opens USD 10 mio credit
facility to refinance the bank’s growing SME portfolio. Besides funding,
Absolut Bank will receive the technical assistance to improve the credit
procedures and employees training.
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February 2006
The Absolut Bank became the participant of the IFC’s Global Trade
Finance Program with a USD 10 million credit line. The Global Trade
Finance Program managed by IFC supports trade by offering payment guarantees
of up to three years on the risks taken by bank counterparts in emerging
markets worldwide. The Global Trade Finance Program started on September
30, 2005. The program has 15 issuing bank members so far, as well as
42 international confirming banks.
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October 2005
The Absolut Bank signed the Mandate Letter under the EBRD Mortgage
Loan Agreement. According to this Agreement, the EBRD will provide the
Absolut Bank with a USD 10 million facility to refinance bank’s mortgage
portfolio. This is EBRD’s third project with the Absolut Bank and it
is built on a partnership that began in 2003
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July 2005
The IFC provides the Absolut Bank with a USD 15 million mortgage backed
credit loan to expand the bank’s residential mortgage program.
The International Finance Corporation (IFC) and the Absolut Bank signed
a Multi Project Facility Agreement. Under the framework of this Agreement,
the IFC bought 7,5% stake in the capital of the Absolut Bank. Such equity
investment strengthens bank’s capital base and enable it to expand its
operations in the Moscow region and St. Petersburg.
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December 2004
The EBRD provided the Absolut Bank with SME credit facility to expand
the SME lending activity of the bank to the amount of USD 10 million
for period of 4 years.
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December 2003
The Absolut Bank was included into the Trade Facilitation Program
managed by the European Bank of Reconstruction and Development (EBRD).
At the present time the Absolut Bank is one of the most active issuing
and confirming banks with a USD 50 million credit limit.
