EDB closes its first direct investment transaction
The Bank withdraws from the Bank of Khanty-Mansiysk.
Almaty, 18 January 2013. Eurasian Development Bank (EDB) received payment for its 3.3% stake in the Bank of Khanty-Mansiysk (BKM). The transaction was closed in December.
EDB purchased a stake in BKM in October 2008 as a result of an additional public offering. The decision was made pursuant to EDB’s policies aimed at developing the financial sectors of its member states. For EDB this was an opportunity to participate directly, although with a rather small stake, in the development of a large full-service Russian bank and in its gradual transformation into a leading regional bank in Western Siberia and the Urals.
Over the period of EDB’s participation in BKM its assets grew by almost RUR 118 billion (108%) and loan portfolio by RUR 79 billion (143%). BKM is one of Russia’s top 25 largest banks and it has been assigned an international credit rating.
With the initiative and advice from EDB, BKM has introduced corporate governance standards, consolidated its institute of independent directors, and upgraded its constituent and regulatory framework.
In addition, the project was aimed at fostering the privatisation of BKM with a view to strengthening the competitive environment in the Khanty-Mansi Autonomous Okrug and the Siberian Federal Okrug. In September 2012 the government of Yugra sold its stake in BKM via an auction to complete its privatisation.
«We consider that EDB has fulfilled all its objectives in this project,» says Dmitry Zhurba, Deputy Chairman of the EDB Management Board. «In addition, we withdrew from the Bank of Khanty-Mansiysk with a profit. Given the changes that occurred in the market over this period this is a very good result.»
Additional Information
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org