Belarus MSEFF - BelgazPromBank (MSME)

Location:

Belarus

Project number:

38966

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

15 Oct 2008

Status:

Completed

PSD disclosed:

12 Sep 2008

Project Description

A 5 year US$ 40.0 million senior loan to Belgazprombank (BGPB) for MSME financing, of which up to US$ 20 million will be for on-lending to SMEs and up to US$ 20 million to MSEs. It will be the fourth EBRD loan to BGPB.

The project will support expanding BGPB lending operations to private MSEs, as well as more complex corporate lending for private SMEs in Belarus. The sub-loans will be on-lent for up to five years and used for capital expenditures and working capital.

Transition Impact

The project is expected to have an excellent transition impact by

(1) demonstrating that continued lending to the MSME clients is commercially viable;

(2) increasing competition in the sector and

(3) providing still lacking term funding to MSME financing.

The focus will be on further expanding into the regions using the BGPB’s network of sub-branches and outlets and will serve as an excellent platform in reaching out to MSMEs outside of the main cities and main regional centres.

The Client

BGPB is a medium sized Belarusian bank (7th by assets as of end-2007) founded in 1990, and is currently one of the key players in MSME financing in Belarus. As of end-2007, BGPB had a 2.3 per cent market share by assets, 1.7 per cent by customer deposits and 2.1 per cent of customer loans.

BGPB has eight branches (three in Minsk and five in the largest cities of Belarus), which are supported by over 180 points of sales throughout the country. BGPB provides banking services to over 130,000 clients including 5,550 corporates, 4,242 private entrepreneurs and over 120,000 individuals.

EBRD Finance

EBRD will provide BGPB with a MSME senior loan of up to US$ 40 million.

Project Cost

Up to US$ 40 million.

Environmental Impact

BGPB has demonstrated compliance with applicable environmental requirements of the Bank within the existing operations and will be required to continue to apply the EBRD’s Environmental Procedures for Intermediated Financing through Local Banks and the Environmental Procedures for Small and Micro Loans. BGPB has also demonstrated full compliance with applicable national environmental, health and safety and labour requirements. BGPB will need to ensure that their new SME/MSE sub-projects meet the national environmental, health and safety and labour requirements. BGPB will be required to adhere to the EBRD’s Environmental Exclusion and Referral List for financial intermediaries and to submit annual environmental reports to the Bank.

Technical Cooperation

N/A

Company Contact

Mrs Irina Antonova
Global Financial Institutions Head
Belgazprombank
60/2, Pritytskogo St.,
220121, Minsk, Belarus
Tel.: + 375 17 218 36 55
antonova@bgpb.by

 

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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