FIF - Raiffeisen Leasing Belarus SME Line III

Location:

Belarus

Project number:

51137

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Approval date:

27 Aug 2019

Status:

Disbursing

PSD disclosed:

20 Sep 2019

Translated version of this PSD: Russian

Project Description

Provision of a senior loan in the amount of up to €15 million to Raiffeisen Leasing Belarus, a joint limited liability company incorporated in Belarus, for making leases to local private micro, small and medium enterprises ("MSMEs").

Project Objectives

The Project will enable Raiffeisen Leasing Belarus to diversify its funding sources and expand leasing operations with private MSMEs in Belarus.

The Project will further support the strengthening and diversification of the private sector of the economy in Belarus, contributing to the development of the domestic leasing market through engagement with a leading leasing company and fostering a more stable financial environment.

Transition Impact

The Project will support local MSMEs by increasing the availability of financing and contribute to the competitiveness of Raiffeisen Leasing Belarus by facilitating the development of its MSME lease portfolio with a focus on new and regional clients. Ensuring prudent leasing practices as well as adequate portfolio quality will contribute to the resilience of the institution.

Client Information

RAIFFEISEN-LEASING JLLC

Raiffeisen Leasing Belarus is the largest privately-owned leasing company (and the third largest in the market) in Belarus by leasing portfolio with 11 per cent market share. It is majority-owned by Priorbank, part of Raiffeisen Group and the largest private bank in the country. This is the third EBRD project with Raiffeisen Leasing Belarus since 2017, while Priorbank has been a client of EBRD since 1996.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 15,000,000.00

Environmental and Social Summary

Categorised FI (2014 ESP). Raiffeisen Leasing Belarus is operationally integrated within the existing well-performing client Priorbank. Raiffeisen Leasing Belarus has previously provided the completed E&S Due Diligence Questionnaire to the Bank which confirmed its general compliance with PRs 2 and 4, with follow-up required on issues such as implementing a grievance mechanism for employees to meet PR2 requirements. Raiffeisen Leasing Belarus is also benefiting from well-established internal policies developed by Priorbank that cover environmental, health and safety and social matters and are in line with PR9 requirements.

Raiffeisen Leasing Belarus will need to further develop its own internal E&S risk management capacity and continue to implement an Environmental and Social Management Plan (ESMP). This includes appointing a member of senior management to be responsible for the implementation of the EBRD E&S requirements, adopting and implementing the EBRD's E&S Risk Management Procedures for Corporate Loans, SME and Micro Loans to sub-loans, E&S Risk Management Procedures for Leasing Activities, ensuring that credit risk management staff undertake the Bank's on-line E&S E-learning training for FIs. Raiffeisen Leasing Belarus should submit Annual E&S Reports to the EBRD via the FI Sustainability Index on implementation of the ESMP and compliance with the PRs. A monitoring visit will be carried by the EBRD later in the year to review Raiffeisen Leasing Belarus's and Priorbank's risk classification practices for the sub-loans and their internal E&S capacity in relation to handling Cat A projects in line with the Bank's requirements.

Technical Cooperation

None.

Company Contact Information

Dmitry Pirozhkov
dmitry.pirozhkov@priorbank.by
+375 29 155 1766
www.rl.by
31A, V Khoruzhey Str., right wing, room 1, 220002 Minsk, Republic of Belarus

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For business opportunities or procurement, contact the client company.

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