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

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Belarus
Geographic location 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
Completed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 25, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Belarus - BELINVESTBANK JSC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 58.22 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents 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 Jun 18, 2024

Disclosed by Bank Jul 25, 2017

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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. 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The EBRD categorized the project risk as 'FI'.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the EBRD, the Borrower is the Republic of Belarus (Caa1, B-, B- by Moody`s, Fitch and S&P respectively with stable outlook) which will use the proceeds of the sovereign loan for the purpose of provision of subordinated loan to the Belinvestbank.

Belinvestbank (BIB) is a state owned bank ranking fifth by total assets among 24 banks in Belarus with a market share of 5.8 per cent at end-1Q2017. BIB has a network of 34 regional branches and 115 sale points with a full range of services to businesses and retail clients.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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.

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How it works