Project description
and objectives:
|
A subordinated loan of DM 15 million for a term of 10 years. An increase of DM 15 million was signed in January 1998. Two further agreements were signed on 16 September 1998: a new convertible subordinated loan of DM 10 million; and a restatement agreement of a DM 25 million subordinated loan originally provided to AS Eesti Hoiupank, now including a convertability feature.
The principal objectives of the project are to:
- contribute to the capitalisation of HP;
- enable HP to meet new national prudential requirements;
- enable HP to expand its business activities.
|
Transition impact:
|
As the largest financial group in the Baltic states, HP is an important institution in the local market with a strong commercial orientation and reputation for good client service. In order to expand and remain competitive, HP plans to raise its capital base by introducing tier-two capital. The transition impact of the project will be achieved by fostering competition in the financial services market and by facilitating HP’s use of the same variety of instruments to broaden its capital base as is available to international banks.
|
The client:
|
AS Hansapank (HP) is a commercial bank incorporated under the laws of Estonia. HP is 100 per cent privately owned, and the bank's shares are quoted on the stock exchanges in Tallinn, Riga, Helsinki and Frankfurt.
|
EBRD finance:
|
A subordinated loan as part of HP's capital base.
|
Total project cost:
|
The EBRD has DM 65 million (ECU 33 million) subordinated exposure to Hansapank, of which DM 35 million is convertible into Hansapank’s share capital.
|
Environmental impact:
|
HP 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 into HP's credit appraisal processes and a requirement that borrowers comply, at a minimum, with national and local health and safety and environmental regulations and standards and public consultation requirements. HP will submit annual environmental reports to the EBRD.
|
Technical
cooperation:
|
None
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
|
EBRD contact:
|
Anatoly Crachilov, Operation Leader: crachila@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
