Bank attracted $65 million loan from the EBRD to fund Small and Medium Businesses
Bank Saint Petersburg entered into a loan agreement with the EBRD under which it attracted $65 million to fund the small and medium businesses of North-West region of Russia. The three-year loan is to be released in a single tranche.
Bank Saint Petersburg will use the proceeds to extend local currency loans of up to three years to small and medium businesses in St. Petersburg and the surrounding region. Only privately-owned firms employing no more than 250 people and whose annual turnover does not exceed the equivalent of €50 million will qualify for these sub-loans.
Accessing funding remains an acute problem for small and medium businesses in Russia, particularly following the economic and financial crisis which hit the country in 2008. With the market beginning to recover Bank Saint Petersburg anticipates growing demand from borrowers in the Small and Medium-sized enterprise sector, hence new EBRD funding will support growth of the loan portfolio.
Bank Saint Petersburg cooperated with the EBRD since 2006, the first loan agreement was signed for $30 million for purposes of funding loans to small and medium businesses. The relationship was extended In 2008 - Bank Saint Petersburg attracted a $100 million syndicated loan with the EBRD acting as a lead arranger.
In 2009 the EBRD provided Bank Saint Petersburg with a $75 million subordinated loan for the period till 2019 to strengthen its capital base.
The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia.