Pirma Banka (equity)

Location:

Latvia

Project number:

3561

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval 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

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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