Belinvestbank MSME and TFP pre-privatisation financing

Location:

Belarus

Project number:

47620

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

30 Sep 2015

Status:

Repaying

PSD disclosed:

03 Jul 2015

Project Description

The EBRD is providing Micro Small and Medium Enterprise (MSME) credit line of up to € 20 million and Trade Facilitation Programme (TFP) facility of up to €30 million to Belinvestbank (BIB).

The project is undertaken within a broader effort aimed at facilitating the preparation of BIB for privatisation by attracting a private strategic investor into the bank. This effort will include several stages of financing and Technical Cooperation over the course of the forthcoming two to three years. The proposed MSME credit line and TFP facility are the first steps in this process. The subsequent stages of broader pre-privatisation work are part of ongoing effort between the BIB, Belarus authorities and the EBRD.  In addition, the project will enhance Belarus small and medium private enterprise access to longer term credit resources and facilitate international trade involving Belarus companies.

Transition Impact

Expanding the scope and quality of product lines offered by BIB to private sector and other commercially operating companies in Belarus will expand the use of commercial instruments necessary for supporting businesses in presently challenging environment. The project will also facilitate skills transfer to BIB MSME lending and TFP operations.

Ability of BIB to expand its work with private and other commercially operating businesses will enhance the value of BIB to potential investors and, combined with other planned measures to be implemented with subsequent projects, will improve the potential for attracting financial and strategic investors into BIB, and more broadly in Belarus.

The expected transition impact rating is ‘strong’.

The Client

BIB is a state-owned universal commercial bank operating in Belarus and focused on providing financing and other financial services to domestic clients. The bank is among five largest banks in the country and its client base includes a mixture of large exporting enterprises, medium and small size companies as well as individual clients.

EBRD Finance

MSME credit line of up to € 20 million.

TFP facility with a limit of up to €30 million.

Project Cost

Up to €50 million.

Environmental and social categorisation, impact, and mitigation

Categorised FI

In line with PR9, the bank will need to adhere to the EBRD’s Environmental and Social Exclusion and Referral Lists. BIB will also submit annual environmental and social reports to the EBRD, including reporting on sub-projects. Sub-borrowers financed through credit line under the MSME facility, as usual for this type of project, will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

Technical Cooperation

None at this stage.

A Technical Cooperation program will be agreed and implemented in stages in parallel with this and subsequent financing operations.

Company Contact

Andrei Dzhumkov, Head of International Division

Belinvestbank
29, Masherova pr-t,
220002, Minsk, Belarus
 phone. +375 17 289 28 99
e-mail: dzhumkov@belinvestbank.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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.