Michel Perhirin, the MDM-Bank board chairman, said the funds from the $100 mln International Finance Corporation (IFC) loan facility granted to the bank in June would go to help small and medium business acquire energy-saving equipment. Loans will be granted for a term of 5-7 years, he said.
The board chairman said the remaining $80 million would be spent on the bank's mortgage program and also on small and medium business lending.
According to Perhirin, the portfolio of MDM-Bank mortgage loans is expected to reach $450-500 million by the end of 2007 compared with $242 million as of July 1.
MDM-Bank will sell 5% of its charter capital to the IFC, the world's largest multilateral source of loan and equity financing for emerging market private sector projects, for $184 million, said Yulia Kochetygova, the head of the bank's department for corporate relations.
According to Kochetygova, a meeting for the bank's shareholders approved on Wednesday a new share issue totaling 5% of the enlarged charter capital, to be purchased by the IFC for $184 million.