BPS Sberbank MSME Credit Line

Location:

Belarus

Project number:

41859

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

14 Dec 2010

Status:

Complete

PSD disclosed:

19 Nov 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a senior loan of up to US$ 50 million to Belpromstroybank (‘BPS’), a Belarusian subsidiary of Sberbank, a listed majority state-owned Russian bank, for on-lending to micro, small and medium enterprises (‘MSME’).

The Loan would include two tranches of US$ 25 million each, with the second tranche being uncommitted. The Loan will be split as follows: US$ 16 million for micro and small enterprises (‘MSE’) and US$ 34 million for small and medium enterprises (‘SME’).

The project will support the provision of funding to private MSME customers in Belarus particularly in the under-banked regions outside Minsk.

BPS plans to substantially increase its MSME lending as a proportion of its loan portfolio and plans to allocate an additional US$ 100 million of its own internal resources over the next five years.

Due to BPS’ extensive regional branch network (3rd largest bank in Belarus) the EBRD loan would reach private MSMEs in remote areas of the country.

Transition Impact

With this project the EBRD is aiming to support a bank outside of the ownership of the Belarus government in a banking system with over 70 percent state ownership. The proposed loan would facilitate new lending to private MSME clients in Belarus.

The project would provide a boost to the competition among Belarusian banks servicing the MSME sector, and would foster the development of higher quality financial services for local MSMEs.

The Client

BPS, founded in 1923, is one of the oldest banks in the country. It ranks fifth by total assets (among 32 banks) with a 6 percent market share as of end-2009. As of end-2009, the bank’s branch network consisted of 175 outlets.

In December 2009, Sberbank acquired a controlling stake (93.27%) in BPS from the Government of Belarus.

BPS is assigned a Long-term Foreign Currency Issuer Default Rating of ‘B’ by Fitch; a Long-term rating on liabilities in for-eign currency of ‘B+’ by S&P; a Long-term rating on deposits in foreign currency ‘B2’ by Moody’s.

EBRD Finance

US$ 50 million MSME senior loan.

Project Cost

US$ 50 million.

Environmental Impact

BPS has demonstrated compliance with applicable environ-mental requirements of the Bank within the existing operations and will be required to continue to apply the EBRD’s Environ-mental Procedures for Intermediated Financing through Local Banks and the Environmental Procedures for Small and Micro Loans.

BPS has also demonstrated full compliance with applicable na-tional environmental, health and safety and labour requirements. BPS will need to continue to ensure that their new SME/MSE sub-projects meet the national environmental, health and safety and labour requirements.

BPS 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

BPS will benefit from Technical Assistance which is a part of a Programme funded by the EU Neighbourhood Investment Fund (€1.4 million Technical Assistance for Belarusian Banks).

Company Contact

Vasily Matsiushevski, Chairman of the Board,
Tel. +375 17 210 13 14

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

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