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BSTDB Partners with Center-Invest Bank to Expand Local Currency SME Financing in Russia

19.11.2018

19 November 2018 — The Black Sea Trade and Development Bank (BSTDB) and Center-invest Bank (CIB) (Rostov on Don, Russia) are strengthening cooperation to increase access to local currency financing for small and medium-sized enterprises (SMEs) in Russia. BSTDB extends its second RUR 1 billion loan to be used by CIB to support the SME sector development in Southern Russia. The proceeds of the loan will be used to finance expansion and modernization of the production capacity and purchase of new agricultural machinery of CIB’s corporate clients.

"We are happy to develop further the cooperation with our long-term partner Center-Invest Bank by increasing the accessibility of Ruble-denominated funding for Russian SMEs, especially in the southern regions. The development of local currency lending is one of our strategic priorities in the Black Sea region" said BSTDB President Dmitry Pankin.

"Through the partnership with BSTDB we gain access not only to financing for our clients’ projects, but also to the international best practices in banking business and technologies, which enables Center-invest Bank to successfully implement our new strategy "ESG-Digitalization of Center-invest Bank ecosystem" commented Center-invest Bank Deputy CEO Lidia Simonova.

BSTDB and CIB have been cooperating since 2006, jointly supporting the SME sector development in the South of Russia. During these years projects worth EUR 55 million have been successfully financed. The extension of the second BSTDB Ruble-denominated SME facility to CIB is capitalizing on the successful utilization of the initial RUR 1 billion loan provided in 2017, addressing the market demand of the SME clients for local currency financing.

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Founded in 1992, Center-invest Bank (CIB) is a leading local private bank based in the city of Rostov-on-Don in Southern Russia. CIB’s business is concentrated in the region of Rostov-on-Don and neighboring southern regions of Russia focusing on agriculture, manufacturing, transportation sectors. The Bank is ranked among Top15 Russian banks on SME lending. With 126 branches and sub-branches in the south of Russia region, it provides a wide range of modern banking services and products for business and retail customers. CIB is majority owned by Russian private shareholders and by EBRD, DEG, and Erste Group (Austria). The Bank has total assets of RUB 102.6 billion (as at 1 January 2018) and has a market share of 82% in lending and 85% in retail deposits in Rostov region among local banks. CIB is rated Ba3 long-term by Moody’s, with a stable outlook. www.centrinvest.ru

Press contact: Natalia Alyabieva, tel: +7 863 267-99-88, n.alyabieva@centrinvest.ru

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term "A-" by Standard and Poor’s and "A2″ by Moody’s. For information on BSTDB, visit www.bstdb.org.

Press contact: Haroula Christodoulou, tel: +30 2310 290533, cchristodoulou@bstdb.org