EBRD TO ISSUE A $125-MILLION CREDIT TO SOCIETE GENERALE FOR DEVELOPMENT OF OPERATIONS IN RUSSIA

WPS - Russian Business Monitor

June 4, 2004

The EBRD is lending two Russian affiliates of France's Societe Generale up to $125 million to help private Russian companies gain access to medium-term credit and stimulate the growth of retail lending, leasing and mortgages.
The EBRD is advancing up to $75 million for five years for on-lending to Russian companies and the retail market by Banque Societe Generale Vostok (BSGV), $25 million for 12 years to finance residential lending by BSGV, and up to $25 million for five years to fund leasing deals for private Russian companies through BSGV Leasing.

Fifteen Western banks participated in syndication of these two loans and provided $65 million. These are Bankgesellschaft Berlin AG, Caja Madrid, International Finance Participation Trust (IFPT), LRP Landesbank Rheinland-Pfalz, NordLB and WGZ-Bank, Piraeus Bank, London Branch, Sumitomo Mitsui Banking Corporation Europe Limited, Caixa Geral de Depositos, New York Branch, Erste Bank, HSH Nordbank AG, Raiffeisen Landesbank Oberosterreich and Osterreichische Volksbanken-AG, State Bank of India, Nassau (OBU) Bank fur Arbeit und Wirtschaft.

Societe Generale also plans to attract another package of financing for its Russian operations: $75 million for development of the mortgage program and $20 million to BSGV Leasing.

Banks Societe Generale Vostok established in 1993 is a 100% subsidiary of the French banking group. Its authorized capital amounts to 222.35 million rubles. As of October 1, 2003, balance profit of the bank amounted to 1.21 billion rubles, equity amounted to 539.09 million rubles and attracted funds amounted to 4.19 billion rubles. The bank is going to open a branch network in Moscow, St. Petersburg and Russian regions.

Societe Generale Group is a banking group that works worldwide. Its credit portfolio for emerging countries amounts to 14 billion euros. Before the Russian revolution of 1917 the group had a branch network in Russia spread from St. Petersburg to Vladivostok. Banque Russo-Asiatique belonging to the bank was one of the largest banks in Russia then with a network of 175 branches.