Rietumu Banka - syndicated loan

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The proposed project will provide Rietumu Banka with a EUR 60 million syndicated loan as medium-term funding for providing loans to corporate customers in Latvia, many of which would be SMEs. Using an A/B loan structure the EBRD intends to book EUR 20 million for its own account and to syndicate EUR 40 million. Following this first exposure to the commercial debt market, the bank is expected to be in a stronger position to attract additional funding at longer maturities in the future. The proposed loan will provide Rietumu Banka access for the first time to the international commercial debt market. Consequently the loan will improve the bank’s balance sheet maturity structure and diversify its funding base, enabling the bank to further expand its corporate lending operations and thus increase the competition among banks in Latvia. Rietumu Banka is the fourth largest bank among 23 banks in Latvia with a market share of 8% by assets. The bank specialises as a corporate bank and has its headquarters in Riga and representative offices in countries including Estonia, Lithuania, Russia, Ukraine, Belarus and Kazakhstan. Using an A/B loan structure the EBRD intends to book EUR 20 million for its own account and to syndicate EUR 40 million. EUR 60 million. Rietumu Banka will need to adopt the EBRD’s Environmental Procedures for Local Banks including ensuring compliance with the applicable national environmental, health and safety legislation, adherence with EBRD’s Environmental Exclusion and Referral List and submission of annual environmental reports to the Bank. During 2003 Rietumu Banka benefited from technical assistance provided by the EU Phare programme under the SME Finance Facility. Mr Rolf Fuls, Executive Vice President Rietumu Banka Tel. +371 7 025 224