HANSABANKA (SUB DEBT)

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A/S Hansabank-Latvia (HBL) is the sixth-largest banking institution in Latvia and a full subsidiary of the Estonian AS Hansapank. The principal objectives of the project are to: HBL is an important institution in the market with a strong commercial orientation and reputation for good client service. In order to expand, and remain competitive, HBL plans to raise its capital by introducing an element of tier-two capital. The project will strengthen HBL's capital base and enable it to serve its retail and corporate clients more effectively. The transition impact of the project will be achieved by: first, fostering competition in the financial services market; and second, by facilitating HBL's use of the same variety of instruments to broaden its capital base as is available to international banks. A/S Hansabank-Latvia (HBL) is the sixth-largest banking institution in Latvia and a full subsidiary of the Estonian AS Hansapank. A subordinated loan, which will form part of HBL's capital base. Up to the equivalent of US$ 4 million (ECU 3.7 million), all of which will be financed by the EBRD. HBL will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks, which provide for the integration of environmental due diligence into such banks' credit and investment appraisal processes and a requirement that borrowers comply, at a minimum, with national and local health and safety and environmental regulations and standards. HBL will submit annual environmental reports to the EBRD. None