Priorbank Funding Facility

Location:

Belarus

Project number:

37883

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Approval date:

10 Jul 2007

Status:

Completed

PSD disclosed:

08 Jun 2007

Project Description

The proposed Facility comprises a USD 20 million MSME credit line and a commercial Syndicated Loan of up to USD 50 million.

The key objectives of the Facility is to improve access to term financing for Micro and SME (MSME) private sector companies in Belarus and to strengthen an important private bank in the country.

Transition Impact

The Facility is expected to have a significant transition impact. The project will contribute to demonstrating that continued lending to the MSME niche is commercially viable and will therefore encourage other banks to expand their presence in this important market segment, which will increase competition and improve the overall level of financial services, particularly for micro and small enterprises. The Facility will also utilise the broad network of branches of Priorbank and will provide a better access to much needed financing for MSMEs in the regions on a commercial and more sustainable basis.

The envisaged commercial syndication will also allow for a private Belarusian commercial bank to maintain its presence on the international debt market and bring new financiers to Belarus during a period of increased economic uncertainty.

The Client

Priorbank was founded in 1989 and gradually developed into a leading private bank in the country. It is majority owned by Raiffeisen International Bank Holding, with the EBRD being the second largest shareholder.

EBRD Finance

(i) a USD 20 million MSME credit line, including an EBRD part of up to USD 15 million with the remainder to be provided by a reputable co-financing partner; and

(ii) a commercial Syndicated Loan to be launched in the fourth quarter of 2007 of up to USD 50 million, of which up to USD 17 million will be financed by EBRD and the remainder to be provided by other participating banks.

Project Cost

Up to USD 70 million.

Environmental Impact

The project will be carried out by Priorbank in compliance with EBRD’s Environmental Procedures for Intermediate Financing through Local Banks and the Environmental Procedures for Small and Micro Loans, including adherence to the EBRD Environmental Exclusion and Referral List for FIs. Priorbank will need to ensure that their SME/MSE sub-projects meet the national environmental, health and safety and labour requirements. Priorbank will be required to submit annual environmental reports to the Bank.

Technical Cooperation

None.

Company Contact

Mr Vladimir Dedioul , Member of the Board

31A V.Khoruzhei St.,
Minsk 220002

Tel: +375 172 89 90 08

Email: vladimir.dedioul@priorbank.by

 

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

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