On December 31, 2013, MIGA issued guarantees of €285.0 million ($390.0 million) covering a shareholder loan by RCI Banque S.A. of France to RN Bank (RNB) in the Russian Federation. The guarantees are for a period of up to seven years against the risk of transfer restriction.
The project involves the establishment of RNB in Russia. RNB is a captive-finance bank offering car financing for retail and corporate customers to purchase Renault-Nissan Alliance vehicles as well as financing of inventories of the local brand dealers.
The project will enhance access to finance for individuals and businesses across a number of cities and towns in Russia. A growing share of credit will be for cars in the medium to lower end of the market, servicing customers for whom personal ownership of a new vehicle thus far might have been unaffordable. As RNB’s operations grow, it is anticipated that the bank would offer more products.
The addition of new outlets where RNB will operate, together with an envisaged increase in employment opportunities at the bank’s headquarters in Moscow, is expected to result in an increase of around 200 staff in the next five years. The project is also expected to enhance knowledge and experience through the provision of up-to-date training to some 800 credit managers across the country.
One of the main objectives of the World Bank Group’s Country Partnership Strategy for the Russian Federation is to support the development of the country’s financial sector, especially access to finance. The project is consistent with this goal.