FIF - Priorbank LCY loan (EBRD-50396)

Regions
  • Europe and Central Asia
Where the impacts of the investment may be experienced.
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
Active
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
Aug 28, 2018
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
Priorbank
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)
$ 14.14 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 14.14 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 14.14 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Mar 12, 2019

Disclosed by Bank Oct 16, 2018


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Project Description

According to EBRD website, the project contains a provision of a senior unsecured loan in the amount of up to US$15 million equivalent in local currency to Priorbank. It aims to represent an additional local currency source for Priorbank and enable them to expand and facilitate local currency lending to private micro, small and medium-sized enterprises in Belarus, while helping MSMEs avoid taking on currency exchange risks. The Project will increase local currency intermediation in Belarus thus supporting the development of the domestic money and capital markets in the country and fostering a more stable financial environment.

Further, it will support the competitiveness of Priorbank by facilitating the development of its MSME loan portfolio with a focus on new and regional borrowers. Providing the local currency funding as well as requirements to comply with financial covenants will contribute to resilience of the institution.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Private Actors

Priorbank is the seventh largest bank among 24 banks in Belarus with 5.5 per cent market share by total assets as of June-2018. It is majority-owned by Raiffeisen Bank International and is the largest private bank with around 90 sales offices across the country. Priorbank has been a client of the EBRD since 1996 through multiple lending facilities and equity participation.

Contact Information

Project Contact: Denis Pekun
Email Address: Denis.Pekun@priorbank.by
Telephone No.: +375 17 289 92 13
Office Address: 31-A, V Khoruzhey St., 220002 Minsk, Republic of Belarus

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.