EESTI UHISPANK - HOUSING LOAN

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The project is a secured housing finance facility of DM 12 million, with a ten-year maturity. The facility will be for on-lending to individuals for residential mortgages. Objectives are to: (i) support Eesti Uhispank's strategy to develop its retail business; (ii) encourage competition in the Estonian banking market; (iii) encourage home ownership and support the construction industry. The project will have a positive impact on the transition by enabling an Estonian bank to offer clients long-term resources for which funding is not available in the local market and by supporting the development of the private construction industry. Eesti Uhispank (Union Bank of Estonia) is the second-largest bank in Estonia in terms of assets. It is listed on the stock exchanges of Tallinn, Helsinki and Munich, and its shares are widely held. Its headquarters are in Tallinn, and it has over 70 branches in Estonia. The bank has recently merged with Pohja-Eesti Pank (North Estonian Bank). The EBRD is providing a secured housing finance facility of DM 12 million (ECU 6.15 million) with a ten-year term. The facility will be used to on-lend to individuals for the purchase of primary residences in Estonia. DM 12 million (ECU 6.15 million). Eesti Uhispank carries out its operations in accordance with the EBRD's Environmental Procedures for Local Banks, which provide for the integration of environmental due diligence in the bank's credit appraisal process and a requirement that borrowers comply with local/national health, safety, environmental and public consultation requirements. None