EBRD and EIB finance boost for Belarus SMEs

Hundreds of small businesses in Belarus will be able to benefit from loans with longer maturities provided by Belinvestbank thanks to new resources made available through a syndicated loan arranged by the European Bank for Reconstruction and Development (EBRD).

The loan is the first internationally-syndicated transaction for one of the country’s major financial institutions in almost eight years, contributing to its stronger international profile and wider partner network. The facility is recognition of Belinvestbank’s sustainable development and positive transformational changes achieved in cooperation with the EBRD.

The three-year syndicated loan of up to 50 euros million consists of an A Loan of up to 15 million euros provided on the bank’s own account and a B Loan of up to 35 million euros to be provided by several international lenders from Germany, Luxembourg, Portugal, Switzerland and the US, which have shown significant interest in the transaction.

The facility is in the framework of the pre-privatisation support provided by the EBRD to Belinvestbank under the Memorandum of Understanding signed between the Republic of Belarus and the bank in 2015. The mobilisation of medium-term external financing will contribute to further diversification of Belinvestbank’s funding base, strengthen the structure and maturity profile of its balance sheet, and contribute to its further commercialisation.

Last month another Belarus bank, Belagroprombank, took out a 50 million-euro loan from the European Investment Bank for a period of six years with a view to developing small and medium business.