FIF - EAP SMEC - Belaruski Narodny Bank

Location:

Belarus

Project number:

52877

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

08 Dec 2021

Status:

Concept Reviewed

PSD disclosed:

05 Nov 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

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.

Project Objectives

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.

Transition Impact

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.

Client Information

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

EUR 5,000,000.00

Total Project Cost

EUR 5,000,000.00

Additionality

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

Anton Slesarev
aslesarev@bnb.by
+375 17 388 87 75
www.bnb.by
87a Nezavisimosti ave., 220012, Minsk, Republic of Belarus

PSD last updated

05 Nov 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Tel: +44 20 7338 6794
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General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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