PSB receives a five-year loan of up to US$ 60 million from EBRD

Promsvyazbank (PSB) and the European Bank for Reconstruction and Development (EBRD) have signed an agreement whereby EBRD provides a five-year loan of up to US$ 60 million to PSB for on-lending to private clients for energy efficiency projects and the use of renewable energy.

PSB is the first Russian bank, which has received the loan under the EBRD framework, known as the Russian Sustainable Energy and Carbon Finance Facility.

The agreement envisages on-lending to PSB’s larger corporate clients and will target projects based on a more rational use of energy in Russia. PSB clients will be able to take out loans of up to US$ 6.5 million or the equivalent in roubles.

The EBRD energy efficiency programme combines access to long-term funding with the technical expertise needed to structure energy efficiency projects, identify sources of energy waste and develop technical solutions allowing companies to cut energy consumption.

“The current crisis has helped realize the importance of energy modernization and energy cost savings in Russia, and lending under the EBRD agreement will promote energy efficiency at Russian companies”, says Artem Konstandian, First Vice-President of PSB. “The fact that PSB has received the loan in a difficult economic environment attests PSB’s high credibility and reputation.”

The EBRD was the first international financial institution to establish a specialised energy efficiency team in 1994 and has accumulated valuable expertise in innovative energy efficiency and climate change mitigation financing.

The volume of PSB’s international finance transactions in 2008 totaled US$ 3.4 billion. Trade financing of PSB clients remains one of the Bank’s key lines of business. PSB accounted for the 11% share in the SWIFT letters of credit market in Russia in Q1 2009 (according to SWIFT data).

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About Promsvyazbank

OJSC Promsvyazbank, founded in 1995, is one of the leading privately-owned Russian banks, with total assets of RUB461.8 billion, and total capital of RUB49.9 billion under IFRS as of 31 December 2008. Holding company Promsvyaz Capital B. V. owns 84.68% of the Bank, the remaining 15.32% are owned by Commerzbank Auslandsbanken Holding AG, a subsidiary of the second-largest German bank Commerzbank AG. PSB has the following international credit ratings: “Ba2” from Moody’s Investors Service; “B+” from Standard & Poor's; “B+” from Fitch Ratings.  As at 1 July 2009, the regional network of the Bank in Russia encompassed 48 branches, 191 sub-branches and other types of outlets and 1 representative office; a foreign branch and a retail office in Cyprus; and foreign representative offices in Kyrgyz Republic, Ukraine, China, and India.

Banking Group Promsvyazbank includes OJSC Promsvyazbank (head organization), OJSC Volgoprombank, OJSC Yarsotsbank and OJSC Nizhny Novgorod Bank. www.psbank.ru

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