Pirma Banka (equity)

Location:

Latvia

Project number:

3561

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

22 Oct 1996

Status:

Complete

PSD disclosed:

19 Sep 1996

Project Description

An equity investment of up to the equivalent of US$ 6 million, representing approximately 22 per cent of A/S Rigas Kommercbanka's ordinary share capital.

The principal objectives of the project are to:

  • improve RKB's capitalisation;
  • enhance competition in the Latvian banking market;
  • contribute to RKB's corporate governance;
    enable RKB to meet Bank of Latvia prudential requirements.

Transition Impact

As the third largest bank in Latvia, RKB plays an important role within the country's banking system, and acts as a financial intermediary for the enterprise sector. The project will strengthen RKB's capital base and enable it to serve its corporate clients more effectively.

The Client

Rigas Kommercbanka (RKB), founded in 1989, is 100 per cent privately owned. The client's objective is to continue its development as a full-service corporate bank catering for the growing private enterprise sector in Latvia.

EBRD Finance

An equity investment in 3 million newly issued ordinary shares, representing approximately 22 per cent of RKB's ordinary share capital. The EBRD's investment will not exceed the equivalent of US$ 6 million.

Project Cost

Up to the equivalent of US$ 6 million (ECU 4.76 million), all of which will be financed by the EBRD.

Environmental Impact

C/0: The project does not require an environmental assessment or an environmental audit. RKB will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks, which provide for the integration of environmental due diligence in such banks, credit and investment appraisal processes and a requirement that borrowers comply with national and local health and safety and environmental regulations and standards. RKB 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

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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.