Belgazprombank Business Mortgages Financing Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 45357

Status Complete

Location

Belarus

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 45357

Status Complete

Location

Belarus

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

17 Dec 2013

Disclosure date

14 Nov 2013

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Russian

Project Description

The EBRD is considering the following two transactions with Belgazprombank in Belarus:

1. A Syndicated A/B Loan in the aggregate amount of up to EUR 40 million, of which the EBRD’s portion (A loan) will be up to EUR 10 million and the remaining (B loan) will be syndicated on “best-efforts basis” to interested financial institution(s). The proceeds of the proposed transaction are for on-lending to MSMEs in Belarus and intended to enhance Belgazprombank’s capacity to provide suitable financial products and services to the much underserved MSME market.

2. The first Business Mortgage Financing Loan done by the Bank in Belarus. The loan will be in the aggregate amount of up to EUR 20 million and have a maturity of up to 7 years. The longer tenor is aimed at allowing Belgazprombank to provide private businesses in the country with appropriately structured mortgages for funding their fixed investment needs in office space, retail outlet expansions, warehouses etc.

Transition Impact

The overall project is expected to have a transition impact through:

The Syndicated MSME Loan will act as a catalyst for mobilising external financing and increasing access of local commercial banks to the foreign capital markets. It will contribute with medium to long term external funds for continued support of private MSME’s in Belarus.

The Business Mortgage Financing Loan will facilitate the appropriately structuring of business mortgages. It will also contribute to the establishment of best industry practice in business mortgage lending in Belarus including (1) adequate risk assessment of the borrower, (2) bringing the tenor and repayment schedule more in line with the nature of the underlying asset, as well as (3) appropriate disclosure to the sub-borrower with regards to the inherited risk of FX loans.

The Client

Belgazprombank is a mid-sized Belarusian bank (7th by assets as of end-June 2013) founded in 1990. The bank has been an EBRD client from 1996 and is currently one of the key players in MSME financing in Belarus with a proven track record and significant experience supported by an extensive branch network throughout the country.

EBRD Finance

A Syndicated MSME Loan to Belgazprombank in Belarus in the aggregate amount of up to EUR 40 million, of which the EBRD’s portion (A loan) will be up to EUR 10 million and the remaining (B loan) will be syndicated on a “best-efforts basis” to interested financial institution(s). The proposed transaction is expected to have up to 5 years maturity.

A senior unsecured loan of up to EUR 20 million with a maturity of up to 7 years for further on-lending to private corporates and individual entrepreneurs in Belarus for the purpose of business mortgages.

Project Cost

Up to EUR 60 million, including:

Up to EUR 40 million Syndicated MSME Loan, and
Up to EUR 20 million Business Mortgages Financing Loan

Environmental Impact

Categorised FI. BGPB is an existing client of the EBRD, and its past environmental reporting has been satisfactory. In line with PR9, the bank will need to adhere to the EBRD's Environmental and Social Exclusion and Referral Lists and continue to submit annual environmental and social reports to the Bank, including reporting on sub-projects. Sub-borrowers financed through BGPB's credit line under this facility will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

Technical Cooperation

None.

Company Contact

Mrs Irina Antonova
Global Financial Institutions Head
Belgazprombank
60/2, Pritytskogo St.,
220121, Minsk, Belarus

Tel.: + 375 17 218 36 55
E-mail: antonova@bgpb.by

Transition impact

ETI Score:60

PSD last updated

25 Nov 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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