RN Bank
Project Description
This summary covers a shareholder loan by RCI Banque S.A. of France to RN Bank (RNB) in the Russian Federation. The investor has applied for a MIGA guarantee of €285.0 million ($390.0 million) 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 loans and leases for individuals and businesses to purchase Renault-Nissan Alliance vehicles as well as financing of inventories of the local brand dealers.
Environmental Categorization
The project is a category FI-3 under MIGA’s Policy on Social and Environmental Sustainability.
Development Impact
The proposed 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 end-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 financial products.
The addition of new RNB service outlets, together with an envisaged increase in employment opportunities at the bank’s headquarters in Moscow, is expected to result in an increase of around 300 staff in the next five years. The proposed project is also expected to transfer knowledge and experience through the provision of up-to-date training to some 800 credit managers in about 15 cities across different regions.
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 proposed project is consistent with this goal.