Background

IBEC took part in the issue of securities of SME Bank

International Bank for Economic Co-operation acted as a co-organizer and investor in the securitization of the SME Bank’s loan portfolio in the sector of small and medium-sized enterprises. Bonds issued in the amount of 5.8 billion rubles are guaranteed by the SME Corporation (ACRA rating - AAA (RU)). The rate of the 1st coupon is set at 6.70% per annum. The issue was also organized by Sovcombank, BCS Global Markets, VEB.RF and Promsvyazbank.

The Chairman of the Board of SME Bank Dmitry Golovanov noted: “We have managed to place bonds at favorable price conditions due to the fact that both investors familiar with securitization instruments and the new ones took part in the transaction. SME Corporation as a guarantor provided the main advantage of this tool – involvement of private capital in the financing of the SME sector and mobilization of non-government resources“.

For IBEC, participation in the issue is not only an attractive commercial transaction, but it also meets the bank's objectives in supporting and developing small and medium-sized businesses in the participating countries. According to Denis Ivanov, IBEC Chairman of the Board, “IBEC notes the growing interest of national and multilateral development banks in supporting the SME segment in Russia and the bank’s member countries, including the tool for securitization of loan portfolios. We have once again acted as an anchor investor and co-organizer of the SME Bank issues. Work with such tools is an effective element of interaction with the SME segment for IBEC and other development institutions.”

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