Project description
and objectives:
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An equity investment of up to the equivalent of US$ 6 million, representing approximately 22 per cent of A/S Rigas Kommercbanka's ordinary share capital.
The principal objectives of the project are to:
- improve RKB's capitalisation;
- enhance competition in the Latvian banking market;
- contribute to RKB's corporate governance;
enable RKB to meet Bank of Latvia prudential requirements.
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Transition impact:
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As the third largest bank in Latvia, RKB plays an important role within the country's banking system, and acts as a financial intermediary for the enterprise sector. The project will strengthen RKB's capital base and enable it to serve its corporate clients more effectively.
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The client:
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Rigas Kommercbanka (RKB), founded in 1989, is 100 per cent privately owned. The client's objective is to continue its development as a full-service corporate bank catering for the growing private enterprise sector in Latvia.
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EBRD finance:
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An equity investment in 3 million newly issued ordinary shares, representing approximately 22 per cent of RKB's ordinary share capital. The EBRD's investment will not exceed the equivalent of US$ 6 million.
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Total project cost:
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Up to the equivalent of US$ 6 million (ECU 4.76 million), all of which will be financed by the EBRD.
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Environmental impact:
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C/0: The project does not require an environmental assessment or an environmental audit. RKB will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks, which provide for the integration of environmental due diligence in such banks, credit and investment appraisal processes and a requirement that borrowers comply with national and local health and safety and environmental regulations and standards. RKB will submit annual environmental reports to the EBRD.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Toby Moore, Operation Leader: mooret@rig.ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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