FIF - Belarusky Narodny Bank Syndicated

Location:

Belarus

Project number:

48289

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

06 Jul 2016

Status:

Complete

PSD disclosed:

01 Jun 2016

Translated verion of this PSD: Russian

Project Description

EBRD intends to arrange a senior unsecured syndicated A/B loan in the aggregate amount of up to US$ 20 million to be comprised of:

(a) "A Loan" of up to US$ 5 million for the account of EBRD; and

(b) "B Loan" of up to US$ 15 million, which will be syndicated to financial institutions.

The proceeds of the syndicated A/B loan will be used for on-lending to eligible MSMEs.

Project Objectives

The facility will benefit private sector micro, small and medium borrowers in Belarus and help elarusky Narodny Bank to diversify its funding base and improve the maturity profile of its balance sheet.

Transition Impact

The main sources of transition impact are expected to materialise from (1) the demonstration effect from a recently underused approach for securing funding, and (2) market expansion for local SMEs.

Client Information

BELARUSKY NARODNY BANK OJSC

BNB is majority owned by the Bank of Georgia. It is a growing medium-sized bank, ranked 12th among 26 banks in Belarus by total assets as of the end of 2015. BNB has been a client of the EBRD since 2011.

BNB is a primarily SME focused bank, known for the high-quality services, flexibility and promptness in decisions-making, which operates in the sector, dominated by large state-owned banks.

EBRD Finance Summary

USD 5,000,000.00

Up to US$ 5 million excluding the syndicated part. The proposed transaction is expected to have up to 4 years maturity including a grace period of up to 1 year on repayment of principal.

Total Project Cost

USD 20,000,000.00

A syndicated A/B loan to BNB in the aggregate amount of up to US$ 20 million, of which EBRD portion comprises of up to US$ 5 million while the remaining (B loan) will be syndicated to interested financial institution(s). The proposed transaction is expected to have up to 4 years maturity including a grace period of up to 1 year on repayment of principal.

Environmental and Social Summary

Categorised FI (2014 ESP). BNB operates in compliance with EBRD's PRs 2, 4 and 9, and its past performance and annual environmental and social (E&S) reporting to date for existing exposures has been satisfactory. For this transaction the bank will need to continue complying with PRs 2, 4 & 9,
implement the E&S Risk Management Procedures for MSME Loans, ensure that appropriate credit staff undertakes the Bank's on-line E&S E-learning training for FIs, and submit annual E&S reporting via Sustainability Index to the EBRD. Sub-borrowers financed through BNB'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


 

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