A sovereign loan for subordinated loan to Belinvestbank (EBRD-48503)

Countries
  • Belarus
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 25, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
BELINVESTBANK JSC
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 58.22 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 50 million
Converted using 2017-07-25 exchange rate.
Loan Amount (USD)
$ 58.22 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 50 million
Converted using 2017-07-25 exchange rate.
Project Cost (USD)
$ 58.22 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported EUR 50 million
Converted using 2017-07-25 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 23, 2018

Disclosed by Bank Jul 25, 2017


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Project Description

According to EBRD website, the project includes provision of a sovereign loan of up to €50 million in favour of the Republic of Belarus for the purpose of issuing a subordinated loan by the Borrower to Belinvestbank, an open joint-stock company incorporated in Belarus. It aims  to support capitalisation of Belinvestbank and the expansion of operations in line with the approved business strategy. This transaction represents the third step of its staged pre-privatisation engagement with Belinvestbank, following the provision of finance and the beginning of the implementation of a comprehensive institutional building programme. It will further support the process of commercialisation and the eventual privatisation of a state-owned bank, as agreed in the MoU with the authorities in 2015. The Project will contribute to the promotion of private ownership in the context of the state-dominated banking sector. The subordinated loan, which is Tier-2-compliant, will strengthen BIB's capitalisation to support the implementation of BIB`s business strategy, which includes the expansion of lending to private MSMEs. 

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Contact Information

Project Contact: Denis Dikun
Email Address: d.dikun@belinvestbank.by
Telephone No.: +375 17 239 55 18, +375 17 239 55 18
Office Address: 29, Masherova Avenue, 220002, Minsk Republic of Belarus

General enquiries to EBRD: 
Telephone No.: +44 20 7338 7168
Email Address: projectenquiries@ebrd.com

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.