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FMO subordinated loan enables NBD Bank growth

June 5, NBD Bank and FMO signed a new agreement for 5.5 years. This is the first subordinated loan made available to NBD Bank under the agreement with FMO. The loan is worth US$ 15 million and will cause the bank’s equity to increase considerably. This enables NBD Bank to increase its loan portfolio and expand its growth. As of today, NBD Bank is the only bank in the Nizhny Novgorod Region of which the equity incorporates subordinated loans from international financial institutions. It should be noted that the increase of equity by using subordinated loans became a regular practice for the bank starting from 1999.The bank considers using the funds received for funding projects of local companies and developing its own branch network. This agreement with FMO is the fourth one, which testifies for the sustainable partnership and high level of mutual trust.

Yevgeny Makskov, Head of NBD Bank Corporate Finance and Customers, notes: “Attraction of such a large subordinated loan is possible due to the active bank development, growth of its financial performance.  This new project with FMO is designed for perspective and future development of the bank. The larger equity the larger may be the bank assets and, consequently, more opportunities for its  growth. Increase of the bank’s  equity due to the subordinated loan from FMO shall expand the opportunities for international cooperation as well and enables the bank to actively enlarge its network in other regions of Russia. We highly appreciate the high level of credit achieved between FMO and NBD Bank, it paves the way for further joint cooperation.”     

About NBD Bank – interregional bank, specializing in dealing with small and medium businesses. It was founded in 1992. As at today NBD Bank structural units network incorporates 18 offices in four Russian regions – Nizhny Novgoprod, Ivanovo, Penza Regions and in the Republic of Chuvashia. Its Head Office is domiciled in Nizhny Novgorod.

NBD Bank acquired significant experience of cooperation with international financial institutions, these including: International Finance Corporation, the Netherlands Development Finance Company, European Bank for Reconstruction and Development, German Corporation for Investments and Development, American Finance Corporation WorldBusiness Capital, Black Sea Trade and Development Bank, etc., as well as large Russian financial institutions. Totally, during the years of its existence NBD Bank attracted investments into the regions for the amount exceeding 230 million in US$ equivalent. 

About FMO

The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. FMO's investment portfolio is EUR 3.4 billion, making it is one of the largest bilateral development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.

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Press contact:
Nicoline van Slingelandt
n.van.slingelandt@fmo.nl
+31(0)70 314 9790
+31(0)6 225 630 47