Provision of a senior unsecured loan of up to €5 million-equivalent to be provided to Belaruski Narodny Bank (BNB-Bank) for on-lending to eligible micro, small and medium-sized enterprises ("MSMEs") under the SME Competitiveness Programme of the European Union's (EU) Eastern Partnership. The loan is comprised of two equal tranches,with the second tranche (€2.5 million) being uncommitted and available at the sole discretion of ther EBRD.
The project will enable BNB-Bank to finance long-term investments of MSMEs in upgrading their technology and equipment necessary to meet EU standards in terms of product quality, health and safety measures and environmental preservation under the EaP SMEC Programme.
ETI score: 75
The project supports the following transition qualities: Competetive: BNB-Bank will expand its MSME portfolio with a focus on financing priority investments complying with EU directive(s), ultimately facilitating competitiveness of Belarusian MSMEs. Resilient: The project aims to ensure prudent lending practices and adequate portfolio quality.
BELARUSKI NARODNY BANK
Belaruski Narodny Bank (BNB-Bank), an EBRD partner bank since 2011, is a mid-sized bank in Belarus, owned by Bank of Georgia. Its activity is primarily focused on MSME lending.
EBRD Finance Summary
Total Project Cost
Key sources of additionality under the project are (i) Financing structure (long-term tenor in support of investment activity) and (ii) Knowledge, innovation and capacity building (technical assistance under the programme will support timely realisation of EU-compliant investments in Belarus).
Environmental and Social Summary
Categorised FI (2019 ESP). BNB-Bank is an existing client and its past performance and annual environmental and social (E&S) reporting to date for existing exposures has been satisfactory. Due to the current situation in Belarus particular attention has been paid to the application of PR2 and the impacts of COVID-19. Additional information and clarifications provided by the bank's HR department have confirmed compliance with PR2, including workers' grievance mechanism, and that BNB-Bank has put in place risk management procedures regarding COVID-19. The bank will need to continue to comply with PRs 2, 4 and 9, including the updated E&S Exclusion List introduced with ESP 2019 as well as the Referral List, continue to implement the E&S Risk Management Procedures for MSME Loans, ensure that appropriate credit staff undertake the Bank's on-line E&S E-learning training for FIs and submit annual E&S reports to the EBRD. Potential renewable energy sub-projects under this transaction will need to follow the E&S Eligibility Criteria for such investments. BNB-Bank will also benefit training and support by dedicated EaP SMEC programme consultants.
Technical Cooperation and Grant Financing
EaP SMEC sub-operation is complemented by grant funding (TC and Non-TC) sourced from the EU through the Delegation Agreement between EBRD and the European Commission on the SME Competitiveness Programme in Eastern Partnership. In addition to long-term financing, eligible sub-borrowers will receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their investment projects.
Company Contact Information
+375 17 388 87 75
87a Nezavisimosti ave., 220012, Minsk, Republic of Belarus
PSD last updated
05 Nov 2021
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