The European Bank for Reconstruction and Development (EBRD) is set to acquire a minority equity stake of 11.75% in Promsvyazbank, a Russia-based private bank. When completed, the deal would give the EBRD and Promsvyazbank’s other minority shareholder, Commerzbank, sufficient shares jointly to create a blocking minority stake of over 27%.
Nick Tesseyman, director of business group for Financial Institutions at at EBR, said that the investment in Promsvyazbank is aimed at strengthening the capital base of a long-standing partner of the EBRD in order to support its business in the current difficult environment.
Alexander Levkovskiy, president of PSB, said: “Having EBRD as a new shareholder is a positive development for our Bank, which reaffirms our strong market position. We are very pleased that our longstanding and fruitful cooperation has laid the basis for an equity participation by the EBRD in PSB. This will take our partnership to a new level, and allow us to explore new opportunities.”
The transaction, which is subject to regulatory approval, will be the largest EBRD investment to date in the capital of a Russian bank. The investment will entitle the EBRD to nominate a director to the board of directors of Promsvyazbank.
