Belinvestbank MSME A/B Loan

Location:

Belarus

Project number:

50353

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

31 Oct 2018

Status:

Repaying

PSD disclosed:

14 Sep 2018

Translated version of this PSD: Russian

Project Description

Provision of an MSME A/B loan of up to €50 million to Belinvestbank ("BIB"), an open joint-stock company incorporated in Belarus, to be comprised of:

(a) A Loan of min €15 million for the account of EBRD; and

(b) B Loan of up to €35 million to be attracted on "best-efforts basis" from interested financial institution(s).

Project Objectives

The Project will assist Belinvestbank in mobilising external funds which will contribute to diversifying the bank's funding base and expanding lending to private micro, small and medium-sized enterprises ("MSMEs") in Belarus.

The Project will also further support the pre-privatization engagement with Belinvestbank, alongside other debt instruments provided by EBRD, in line with the MoU agreed with the authorities in 2015, focusing on bank's commercialization.

Transition Impact

This Project will further enhance the transition impact made by EBRD to date and support Belinvestbank competitiveness by facilitating the development of its MSME loan portfolio with focus on new and regional borrowers using the bank's country-wide network. Requirements to comply with financial covenants and portfolio quality ratios will also contribute to resilience of the institution.

Client Information

BELARUSIAN BANK FOR DEVELOPMENT AND RECONSTRUCTION BELINVESTBANK JSC

Belinvestbank is the sixth largest bank by total assets among 24 banks in Belarus with a market share of 5.5 per cent at end-June 2018. The bank is majority controlled by the state with a combined direct and indirect stakes of 99.1 per cent, with the remaining minor stakes held by various legal entities and individuals. It has a large regional network of about 125 sales offices covering all 6 regions of the country and providing full range of services to businesses and retail clients.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 50,000,000.00

Environmental and Social Summary

Categorised FI (2014 ESP). BIB is an existing client and to date it's E&S performance and compliance with the EBRD's Performance Requirements (PRs) has been satisfactory as demonstrated through the recent Sustainability Index report submitted to the EBRD. During the latest monitoring visit undertaken by ESD in 2018 it was confirmed that BIB had adopted their own E&S Policy and integrated the EBRD's E&S procedures into their appraisal process. BIB are also in the process of further developing and aligning their Environmental and Social Management System (ESMS) with international best practices in line with the EBRD PR9 as part of the ongoing Institutional Building Programme (IBP) exercise to further improve corporate management practices, policies and procedures. BIB is operating in line with PR2 and has HR policy and a Collective Agreement in place that was revised in 2017. The E&S risks associated with BIB's existing loan portfolio are deemed to be low-medium. For this transaction BIB will be required to continue complying with the EBRD's PRs 2, 4 and 9, implement the EBRD's Environmental & Social (E&S) Risk Management Procedures for Corporate Loans, SME and Micro Loans, ensure that appropriate credit staffs undertake the Bank's on-line E&S E-learning training for FIs, and submit annual E&S reports via Sustainability Index to the EBRD. Sub-borrowers financed through Belinvestbank's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. For any Category A projects BIB will be required to apply PRs 1-8 and 10 and refer such projects to ESD. BIB should also encourage new staff to undertake the EBRD's on-line E&S E-learning training for FIs.

Technical Cooperation

None.

Company Contact Information

Denis Dikun
d.dikun@belinvestbank.by
+375 17 239 55 18
29, Masherova Avenue, 220002, Minsk, Republic of Belarus

Business opportunities

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