Translated version of this PSD: Russian
Project Description
Provision of a senior unsecured loan in the amount of up to US$15 million equivalent in local currency to Priorbank, a joint-stock company incorporated in Belarus, for on-lending to local private micro, small and medium enterprises, to be comprised of two tranches with the second tranche (US $10 million) uncommitted and available at the sole discretion of the EBRD.
Project Objectives
The Project will represent an additional local currency source for Priorbank and enable them to expand and facilitate local currency lending to private micro, small and medium-sized enterprises ("MSMEs") in Belarus, while helping MSMEs avoid taking on currency exchange risks. The Project will increase local currency intermediation in Belarus thus supporting the development of the domestic money and capital markets in the country and fostering a more stable financial environment.
Transition Impact
The Project will support the competitiveness of Priorbank by facilitating the development of its MSME loan portfolio with a focus on new and regional borrowers. Providing the local currency funding as well as requirements to comply with financial covenants will contribute to resilience of the institution.
Client Information
PRIORBANK JSC
Priorbank is the seventh largest bank among 24 banks in Belarus with 5.5 per cent market share by total assets as of June-2018. It is majority-owned by Raiffeisen Bank International and is the largest private bank with around 90 sales offices across the country. Priorbank has been a client of the EBRD since 1996 through multiple lending facilities and equity participation.
EBRD Finance Summary
USD 14,138,603.00
(equivalent of BYN 30,000,000)
Total Project Cost
USD 14,138,603.00
(equivalent of BYN 30,000,000)
Environmental and Social Summary
Categorised FI (2014 ESP). Priorbank operates in compliance with the EBRD's PRs 2, 4 and 9, and its past performance and annual environmental and social (E&S) reporting to date for existing exposures has been satisfactory. The bank will need to continue complying with PRs 2, 4 & 9, implement the E&S Risk Management Procedures for MSME Loans, ensure that appropriate credit staffs undertake the Bank's on-line E&S E-learning training for FIs, and submit annual E&S reporting via Sustainability Index to the EBRD. Sub-borrowers financed through Priorbank's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation
None.
Company Contact Information
Denis Pekun
Denis.Pekun@priorbank.by
+375 17 289 92 13
31-A, V Khoruzhey St., 220002 Minsk, Republic of Belarus
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