Latvijas Unibanka (syn loan)

Location:

Latvia

Project number:

6784

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

05 Oct 1999

Status:

Completed

PSD disclosed:

20 Sep 1999

Project Description

Syndicated loan facility of up to EUR 45 million under a standard A/B loan structure. The A loan for the EBRD’s own account is up to EUR 15 million for a term of five years and the B loan for participant banks is up to EUR 30 million for three to five years. The proceeds of the loan will be used by LUB to extend its private sector lending activities.

Transition Impact

The transition impact of this project would be twofold. The provision of a syndicated loan to a leading financial institution in Latvia would offer a strong demonstration effect to international investors who are currently reluctant to consider financing in the EBRD’s countries of operations following the 1998 Russian crisis. Secondly, as the second largest bank in Latvia, LUB’s financial position and its ability to retain the confidence of the population are important to the health of both the Latvian banking and private enterprise sectors. The syndicated loan, therefore, will strengthen one of the key players in the Baltic economy, and will support LUB in meeting the demand by private sector enterprises for medium-term financing.

The Client

A/S Latvijas Unibanka (LUB) is one of the two largest banks in Latvia. LUB is majority owned by Skandinaviska Enskilda Banken AB (SEB). LUB will use the proceeds of the loan to expand its private sector loan portfolio.

EBRD Finance

Syndicated loan of up to EUR 45 million under an A/B loan structure. The EBRD will take up to EUR 15 million of direct exposure, and the balance will be syndicated among participating banks. Bankgesellschaft Berlin (BGB) has underwritten EUR 20 million of the B loan. The loan will be disbursed in two tranches. The first tranche will comprise 50-75 per cent of the total loan amount. The second tranche will be disbursed after 80 per cent of the first tranche has been used by LUB.

Project Cost

Up to EUR 45 million, a third of it to be financed by the EBRD.

Environmental Impact

LUB will carry out its operations in accordance with the EBRD's Environmental Procedures. These provide for the integration of environmental due diligence into LUB's credit appraisal processes and a requirement that ultimate borrowers comply, at a minimum, with national and local health and safety and environmental regulations and standards and public consultation requirements. LUB will submit annual environmental reports to the EBRD.

Technical Cooperation

None.

 

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)

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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.