EDB to Finance AK BARS Bank’s Projects

Almaty, 13 October 2010. On Tuesday, 12 October, the Eurasian Development Bank signed a framework agreement with AK BARS Bank, under which a revolving credit line will be opened for this Russian bank for the purposes of trade financing.

The agreement is made for two years, and the total size of the facility is $50 million. Financing will be subject to individual tranche agreements with a term of 3 to 12 months.

This transaction with AK BARS Bank is part of the EDB’s Programme of Development of Trade Financing Instruments and Mutual Trade between the Bank’s Member States which was adopted last summer. “The EDB has developed the necessary technology, selection criteria and pricing mechanisms”, commented Dmitry Krasilnikov, member of the EDB Board / Managing Director for Corporate Finance. “For such projects, we select stable, viable banks. It is critical for such banks to have ongoing client projects in trade financing, and the desire to develop this business line even further”.

AK BARS Bank is the authorised bank of the Government of Tatarstan, and has an extensive branch network and a vast client base. “This agreement with the EDB will enable the Russian bank to diversify its financing portfolio and contribute to the economic integration of the EDB’s member states”, said Dmitry Krasilnikov. “In accordance with the terms of the agreement, at least 60% of the loan ($30 million) will be applied by the borrower to finance clients’ export and import transactions which promote mutual trade between the EDB’s member states”.

Some other trade financing transactions with banks from the EDB’s member states are also in the pipeline.

Additional Information

AK BARS Bank was registered with the Central Bank of Russia in 1993. It has over 2 million individual and 46,000 corporate clients. The Bank is one of Russia’s top twenty lending and financial institutions, ranking 16th in terms of equity and 17th in terms of assets.