Vilniaus Bankas

Location:

Lithuania

Project number:

6319

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

27 Apr 1999

Status:

Completed

PSD disclosed:

30 Mar 1999

Project Description

A syndicated loan of up to EUR 75 million extended to Vilniaus Bankas for on-lending to private sector enterprises operating in Lithuania.

The project aims to allow VB to meet the growing demand for bank financing in Lithuania. The proceeds of the loan will be used by VB to lend to private sector enterprises operating in the country.

Transition Impact

The aggregate lending to private sector enterprises in Lithuania represents only 10 per cent of the national GDP as opposed to 30 per cent in Estonia and an average 80 per cent in the OECD countries. The need for further banking intermediation is consequently essential for the country’s transition to a market economy. Against this background, it is reasonable to expect that VB’s loan portfolio will continue to grow for at least the next two years alongside progress in the Lithuanian economy and the resulting demand for bank financing. The proposed loan will support VB in meeting such demand.

The Client

Vilniaus Bankas (VB) is the largest private sector bank in Lithuania, providing a full range of wholesale commercial banking services and certain types of investment banking services. As of end-1998, the bank reported US$ 700 million in total assets, US$ 109 million in total equity and US$ 15 million in net after-tax income. VB has a network of 15 branches and 871 full-time staff. Its senior debt is rated BB+ by Bank Watch.

EBRD Finance

Up to EUR 75 million syndicated loan under an EBRD "A" and "B" loan structure. The EBRD is to take up to EUR 25 million of direct exposure under the "A" loan, with the balance to be syndicated among participating banks. Bankgesellschaft Berlin has been mandated by VB as arranger. Hamburgische Landesbank, Landesbank Kiel and American Express have co-arranged an EUR 50 million "B" loan.

Project Cost

Up to EUR 75 million

Environmental Impact

VB will follow the EBRD's Environmental Procedures for Intermediated Lending through Local Banks in relation to all sub-loans financed through this loan. In implementing these procedures, VB will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

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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