MICROCAPITAL BRIEF: EBRD Syndicates $21m Loan for Belarusky Narodny Bank for MSMEs in Belarus

The European Bank for Reconstruction and Development, a UK-based multilateral institution, recently announced its intent to arrange a “senior unsecured syndicated A/B loan” of USD 21 million to be lent to micro-, small and medium enterprises (MSMEs) via Belarus’s Belarusky Narodny Bank. The loan is divided into a senior tranche of USD 5 million funded by EBRD and a junior tranche of USD 16 million, which will be “syndicated to financial institutions” other than EBRD.

In 2015, EBRD invested EUR 9.4 billion (USD 10.7 billion) in 381 projects in 34 countries and reported total members’ equity of EUR 14.6 billion (USD 16.6 billion). Belarusky Narodny Bank is controlled by the Bank of Georgia Group, which reported total assets of USD 406 million as of 2016.

By Jason Wei, Research Associate

Sources and Additional Resources

About the European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and is owned by 65 countries as well as the European Investment Bank and the European Union as of 2016. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD invested EUR 9.4 billion (USD 10.7 billion) in 381 projects in 34 countries during 2015.

About the Belarusky Narodny Bank

Established in 1991, Belarusky Narodny Bank is a commercial bank in Belarus, with a particular focus on small and medium-sized enterprises. As of February 2010, it had four branches – three in Minsk and one in Vitebsk. Bank of Georgia Group, a private commercial bank, controls 79.99 percent of shares while the International Finance Corporation, a member of the World Bank Group, holds 19.99 percent of its shares. The Bank of Georgia Group reported total assets of USD 406 million as of 2016.

[1] FIF – Belarusky Narodny Bank Syndicated, http://www.ebrd.com/work-with-us/projects/psd/fif-belarusky-narodny-bank-syndicated.html

MicroCapital Universe Profile: European Bank for Reconstruction and Development

MicroCapital Universe Profile: Belarusky Narodny Bank

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