Project description
and objectives:
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The proposed Facility comprises a USD 20 million MSME credit line and a
commercial Syndicated Loan of up to USD 50 million.
The key objectives of the Facility is to improve access to term financing for
Micro and SME (MSME) private sector companies in Belarus and to strengthen an
important private bank in the country.
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Transition impact:
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The Facility is expected to have a significant transition impact. The project
will contribute to demonstrating that continued lending to the MSME niche is
commercially viable and will therefore encourage other banks to expand their
presence in this important market segment, which will increase competition and
improve the overall level of financial services, particularly for micro and
small enterprises. The Facility will also utilise the broad network of
branches of Priorbank and will provide a better access to much needed
financing for MSMEs in the regions on a commercial and more sustainable basis.
The envisaged commercial syndication will also allow for a private Belarusian
commercial bank to maintain its presence on the international debt market and
bring new financiers to Belarus during a period of increased economic
uncertainty.
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The client:
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Priorbank was founded in 1989 and gradually developed into a leading private
bank in the country. It is majority owned by Raiffeisen International Bank
Holding, with the EBRD being the second largest shareholder.
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EBRD finance:
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(i) a USD 20 million MSME credit line, including an EBRD part of up to USD 15
million with the remainder to be provided by a reputable co-financing partner;
and
(ii) a commercial Syndicated Loan to be launched in the fourth quarter of
2007 of up to USD 50 million, of which up to USD 17 million will be financed
by EBRD and the remainder to be provided by other participating banks.
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Total project cost:
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Up to USD 70 million.
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Environmental impact:
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The project will be carried out by Priorbank in compliance with EBRD’s
Environmental Procedures for Intermediate Financing through Local Banks and
the Environmental Procedures for Small and Micro Loans, including adherence to
the EBRD Environmental Exclusion and Referral List for FIs. Priorbank will
need to ensure that their SME/MSE sub-projects meet the national
environmental, health and safety and labour requirements. Priorbank will be
required to submit annual environmental reports to the Bank.
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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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Mr Vladimir Dedioul , Member of the Board
31A V.Khoruzhei St.,
Minsk 220002
Tel: +375 172 89 90 08
Email: vladimir.dedioul@priorbank.by
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EBRD contact:
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Denisa Greslikova, Operation Leader: greslikd@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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