VILNIAUS BANKAS SUBORDINATED LOAN

Location:

Lithuania

Project number:

4644

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

A

Target board date:

07 Apr 1998

Status:

Completed

PSD disclosed:

08 Jul 1998

Project Description

DM 18 million subordinated convertible loan to Bankas Hermis, Lithuania.
The facility would strengthen the capital base of Bankas Hermis and enable it to continue its development according to its strategic plans. It would also provide the bank with longer-term financial resources, which in turn will facilitate longer-term lending activities and help maintain adequate liquidity of the bank.

Transition Impact

The project will help to strengthen the financial sector in Lithuania, improving its capitalisation and providing additional much-needed longer-term funds for the economy.

The Client

Bankas Hermis is a privately owned commercial bank and one of the leading banks in the country. A majority of the shareholders are foreign institutions. The bank is in a rapid expansion phase, and the additional capital resources will support its continuing growth.

EBRD Finance

The EBRD will provide a subordinated convertible loan of up to DM 18 million (ECU 9.5 million).

Project Cost

DM 18 million (ECU 9.5 million).

Environmental Impact

Bankas Hermis will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, Bankas Hermis will require its borrowers to comply, at a minimum, with national /local health, safety, environmental and public consultation requirements.

Technical Cooperation

None

Company Contact

 

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