Priorbank Funding Facility

complete

The proposed Facility comprises a USD 20 million MSME credit line and a commercial Syndicated Loan of up to USD 50 million. The key objectives of the Facility is to improve access to term financing for Micro and SME (MSME) private sector companies in Belarus and to strengthen an important private bank in the country. The Facility is expected to have a significant transition impact. The project will contribute to demonstrating that continued lending to the MSME niche is commercially viable and will therefore encourage other banks to expand their presence in this important market segment, which will increase competition and improve the overall level of financial services, particularly for micro and small enterprises. The Facility will also utilise the broad network of branches of Priorbank and will provide a better access to much needed financing for MSMEs in the regions on a commercial and more sustainable basis. The envisaged commercial syndication will also allow for a private Belarusian commercial bank to maintain its presence on the international debt market and bring new financiers to Belarus during a period of increased economic uncertainty. Priorbank was founded in 1989 and gradually developed into a leading private bank in the country. It is majority owned by Raiffeisen International Bank Holding, with the EBRD being the second largest shareholder. (i) a USD 20 million MSME credit line, including an EBRD part of up to USD 15 million with the remainder to be provided by a reputable co-financing partner; and (ii) a commercial Syndicated Loan to be launched in the fourth quarter of 2007 of up to USD 50 million, of which up to USD 17 million will be financed by EBRD and the remainder to be provided by other participating banks. Up to USD 70 million. The project will be carried out by Priorbank in compliance with EBRD’s Environmental Procedures for Intermediate Financing through Local Banks and the Environmental Procedures for Small and Micro Loans, including adherence to the EBRD Environmental Exclusion and Referral List for FIs. Priorbank will need to ensure that their SME/MSE sub-projects meet the national environmental, health and safety and labour requirements. Priorbank will be required to submit annual environmental reports to the Bank. None. Mr Vladimir Dedioul , Member of the Board 31A V.Khoruzhei St., Minsk 220002 Tel: +375 172 89 90 08 Email: vladimir.dedioul@priorbank.by