Belarus MSEFF - BelgazPromBank (MSME)

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A 5 year US$ 40.0 million senior loan to Belgazprombank (BGPB) for MSME financing, of which up to US$ 20 million will be for on-lending to SMEs and up to US$ 20 million to MSEs. It will be the fourth EBRD loan to BGPB. The project will support expanding BGPB lending operations to private MSEs, as well as more complex corporate lending for private SMEs in Belarus. The sub-loans will be on-lent for up to five years and used for capital expenditures and working capital. The project is expected to have an excellent transition impact by (1) demonstrating that continued lending to the MSME clients is commercially viable; (2) increasing competition in the sector and (3) providing still lacking term funding to MSME financing. The focus will be on further expanding into the regions using the BGPB’s network of sub-branches and outlets and will serve as an excellent platform in reaching out to MSMEs outside of the main cities and main regional centres. BGPB is a medium sized Belarusian bank (7th by assets as of end-2007) founded in 1990, and is currently one of the key players in MSME financing in Belarus. As of end-2007, BGPB had a 2.3 per cent market share by assets, 1.7 per cent by customer deposits and 2.1 per cent of customer loans. BGPB has eight branches (three in Minsk and five in the largest cities of Belarus), which are supported by over 180 points of sales throughout the country. BGPB provides banking services to over 130,000 clients including 5,550 corporates, 4,242 private entrepreneurs and over 120,000 individuals. EBRD will provide BGPB with a MSME senior loan of up to US$ 40 million. Up to US$ 40 million. BGPB has demonstrated compliance with applicable environmental requirements of the Bank within the existing operations and will be required to continue to apply the EBRD’s Environmental Procedures for Intermediated Financing through Local Banks and the Environmental Procedures for Small and Micro Loans. BGPB has also demonstrated full compliance with applicable national environmental, health and safety and labour requirements. BGPB will need to ensure that their new SME/MSE sub-projects meet the national environmental, health and safety and labour requirements. BGPB will be required to adhere to the EBRD’s Environmental Exclusion and Referral List for financial intermediaries and to submit annual environmental reports to the Bank. N/A Mrs Irina Antonova Global Financial Institutions Head Belgazprombank 60/2, Pritytskogo St., 220121, Minsk, Belarus Tel.: + 375 17 218 36 55 antonova@bgpb.by