Vnesheconombank provides US$ 32.8 million loan guarantee to PSB

Russia’s Bank for Development and Foreign Economic Affairs (Vnesheconombank, VEB) has provided a US$ 32.8 million guarantee to Promsvyazbank (PSB) for its long-term loan agreement with Germany’s Kreditanstalt fur Wiederaufbau Вankengruppe (KfW). The loan agreement between PSB and KfW was signed as part of the Russia-Germany SME Financing Initiative in April 2009. Under the agreement, KfW will provide PSB with the US$ 30 million 5-year loan for on-lending to SME clients.

The guarantee agreement was presented to KfW representatives by the VEB Chairman Vladimir Dmitriev on 16 July 2009 in Munich, during a scheduled round of the High Level Russian-German Intergovernmental Consultations. PSB President Alexander Levkovskiy attended the event.

The agreement on Russia-Germany SME Financing Initiative was signed by the VEB and KfW in February 2009.

PSB has been active in the SME market in recent years, with a total SME loan portfolio in excess of RUB 18.9 billion as at 1 January 2009. According to Expert RA rating agency, in 2008, PSB ranked 6th among Russian banks by the volume of SME loan portfolio.

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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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