FIF - Belarusky Narodny Bank LCY loan

Location:

Belarus

Project number:

50375

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

24 Jul 2018

Status:

Disbursing

PSD disclosed:

16 Oct 2018

Translated version of this PSD: Russian

Project Description

Provision of a senior unsecured loan in the amount of up to US$ 10 million equivalent in local currency to Belarusky Narodny Bank (BNB-Bank), a joint-stock company incorporated in Belarus, for on-lending to local private micro, small and medium enterprises, to be comprised of two equal tranches with the second tranche (US$5 million) uncommitted and available at the sole discretion of the EBRD.

Project Objectives

The Project will assist Belarusky Narodny Bank in mobilising external funds in local currency which will help to diversify the bank's funding base and expand local currency lending to private micro, small and medium-sized enterprises ("MSMEs") in Belarus.

The Project will promote local currency lending in Belarus thus supporting the development of the domestic capital market in the country and de-dollarization of the economy as well as fostering a more stable financial environment.

Transition Impact

The Project will support the competitiveness of Belarusky Narodny Bank by facilitating the development of its MSME loan portfolio with a focus on new and regional borrowers. Requirements to comply with financial covenants and portfolio quality ratios will also contribute to the resilience of the institution.

Client Information

BELARUSKY NARODNY BANK OJSC

Belarusky Narodny Bank is a mid-sized privately-owned bank in Belarus ranked 13th by total assets among 24 banks at YE17 and is majority-owned by JSC Bank of Georgia (Georgia). Primarily SME focused, BNB-Bank serves 9.4 thousand unique SME clients and 87.8 thousand unique individual clients through 16 branches.

EBRD Finance Summary

USD 9,425,736.00

(equivalent of BYN 20,000,000)

Total Project Cost

USD 9,425,736.00

(equivalent of BYN 20,000,000)

Environmental and Social Summary

Categorised FI (2014 ESP). Belarusky Narodny Bank's past performance and annual environmental and social (E&S) reporting to date for the existing exposures has been satisfactory. BNB-Bank will need to comply with PRs 2, 4 & 9, implement the E&S Risk Management Procedures for MSME Loans, ensure that appropriate credit and risk management staff undertake the Bank's on-line E&S E-learning training for FIs, and submit annual E&S reports via the FI Sustainability Index to the EBRD. Sub-borrowers financed through the BNB-Bank's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

Technical Cooperation

None.

Company Contact Information

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

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.