The proposed US$ 30 million syndicated senior loan would be used by Priorbank to extend short- to medium-term loans to private sector companies that have few alternatives for attracting term loans in Belarus.
The proposed syndicated loan will be the first-ever syndication in Belarus and will mobilise resources from commercial banks that may otherwise be reluctant to lend to the Belarusian banking sector.
Following successful syndication, the loan amount will be increased to US$ 36 million.
The first-ever syndication in Belarus will provide indirect support to private companies that do not have an easy access to short- to medium-term finance. The project will further support Priorbank, the leading private bank in the country. The syndication should also play a stabilising role in the Belarusian banking sector as a whole by providing one of the major local banks with access to international funding and bringing in western commercial banks that may not otherwise be willing to enter the Belarusian market. The project will demonstrate that the EBRD is ready to support private banks, which have a strong management team and clear market strategy.
Priorbank was founded in 1989 and gradually developed into a leading private bank in the country. It is now majority owned by Raiffeisenbank, Austria, with the EBRD being the second largest shareholder.
Up to US$ 36 million syndicated senior loan under A/B structure. The EBRD is expected to retain US$ 12 million for its own account (the A-Loan). The balance of up to US$ 24 million will be syndicated to commercial banks (the B-Loan).
Up to US$ 36 million
Priorbank will continue to carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, Priorbank will require its borrowers to comply, at a minimum, with national /local health, safety, environmental and public consultation requirements.
Priorbank has benefited from Technical Cooperation in conjunction with Belarus SME Line of Credit to the Republic of Belarus, provided by European Commission TACIS Programme; the Government of the Republic of Belarus and International Cooperation and Development Fund (ICDF) of Taiwan.
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