Syndicated MSME Loan to Belgazprombank

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The EBRD is considering the following two transactions with Belgazprombank in Belarus: 1. A Syndicated A/B Loan in the aggregate amount of up to EUR 40 million, of which the EBRD’s portion (A loan) will be up to EUR 10 million and the remaining (B loan) will be syndicated on “best-efforts basis” to interested financial institution(s). The proceeds of the proposed transaction are for on-lending to MSMEs in Belarus and intended to enhance Belgazprombank’s capacity to provide suitable financial products and services to the much underserved MSME market. 2. The first Business Mortgage Financing Loan done by the Bank in Belarus. The loan will be in the aggregate amount of up to EUR 20 million and have a maturity of up to 7 years. The longer tenor is aimed at allowing Belgazprombank to provide private businesses in the country with appropriately structured mortgages for funding their fixed investment needs in office space, retail outlet expansions, warehouses etc. The overall project is expected to have a transition impact through: The Syndicated MSME Loan will act as a catalyst for mobilising external financing and increasing access of local commercial banks to the foreign capital markets. It will contribute with medium to long term external funds for continued support of private MSME’s in Belarus. The Business Mortgage Financing Loan will facilitate the appropriately structuring of business mortgages. It will also contribute to the establishment of best industry practice in business mortgage lending in Belarus including (1) adequate risk assessment of the borrower, (2) bringing the tenor and repayment schedule more in line with the nature of the underlying asset, as well as (3) appropriate disclosure to the sub-borrower with regards to the inherited risk of FX loans. Belgazprombank is a mid-sized Belarusian bank (7th by assets as of end-June 2013) founded in 1990. The bank has been an EBRD client from 1996 and is currently one of the key players in MSME financing in Belarus with a proven track record and significant experience supported by an extensive branch network throughout the country. A Syndicated MSME Loan to Belgazprombank in Belarus in the aggregate amount of up to EUR 40 million, of which the EBRD’s portion (A loan) will be up to EUR 10 million and the remaining (B loan) will be syndicated on a “best-efforts basis” to interested financial institution(s). The proposed transaction is expected to have up to 5 years maturity. A senior unsecured loan of up to EUR 20 million with a maturity of up to 7 years for further on-lending to private corporates and individual entrepreneurs in Belarus for the purpose of business mortgages. Up to EUR 60 million, including: Categorised FI. BGPB is an existing client of the EBRD, and its past environmental reporting has been satisfactory. In line with PR9, the bank will need to adhere to the EBRD's Environmental and Social Exclusion and Referral Lists and continue to submit annual environmental and social reports to the Bank, including reporting on sub-projects. Sub-borrowers financed through BGPB's credit line under this facility will be required to comply with national environmental, health, safety and labour (EHSL) requirements. None. Mrs Irina Antonova Global Financial Institutions Head Belgazprombank 60/2, Pritytskogo St., 220121, Minsk, Belarus Tel.: + 375 17 218 36 55 E-mail: antonova@bgpb.by