German corporation for investments and development (DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH) signed an arrangement with Bank Center-invest of purchase of over 20.6% of ordinary shares (17.6% of capital) of Bank Center-invest. The volume of transaction makes up USD 14.5 million.
Due to the participation of the DEG in the capital, Bank Center-invest will double its reliability, which is now confirmed not only by the participation of the bank in State deposit insurance system (and also by the volumes of individual deposits – over RUR 4.5 billion), but also by its shareholders: the largest European financial organizations – EBRD and DEG.
The growth of Bank Center-invest capital will give impetus to the development of economy of the South of Russia and to new industrialization of enterprises of the region.
DEG representatives commented the arrangement with the largest Rostov bank in the following way: “DEG participation will provide Center-invest with sufficient capital which has become necessary as a result of the Bank’s considerable growth. Thus Bank Center-invest will be able to expand its branch network in the South of Russia”. (http://www.deginvest.de/english/home/info_service/press/19_2005/index.html).Let us remind you that in April 2005, DEG granted a long-term loan to the bank to the amount of USD 7.5 million for mortgage loans for individuals, and also for lending to SMEs.
DEG (DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH) was created in 1962. It is a state financial and consultative company that is specialized in matters of international development of Germany. The aim of the organization activities is the assistance to the growth of developing countries and countries with transitional economy via supporting private sector. DEG is specialized in granting medium- and long-term investments and has realized its projects in 80 countries of the world, including Russia.
DEG Corporation is a part of KfW banking group. Let us remind you that in December 2004, Bank KfW opened a credit line to Bank Center-invest (to the amount of 6 million euro for the term of 6.5 years) for lending to SMEs of the South of Russia. This KfW line is intended for the enterprises of business sector, service and trade. In the frames of KfW credit line the maximum loan amount is 125 000 euro for 4 years.