EBRD, BNB Bank sign $20m syndicated loan agreement

The loan consists of an A loan and B loan for $5 million and $15 million, respectively. While the A loan is provided on the EBRD's account, the B loan will be extended by a syndication comprising Bank im Bistum Essen eG (BIB), the European Fund for Southeast Europe (EFSE), the Dutch development bank FMO, and Triodos Investment Management. This is the first time BNB Bank has attracted four international co-lenders to the transaction. 

The syndicated loan facility is unique on the Belarus market due to its long maturity of up to four years. BNB Bank will use it to provide local SMEs with long-term funds, which are of critical importance for the expansion of their activities.

First Deputy Chairman of the Belarus National Bank Board Taras Nadolny noted that this syndicated loan is a landmark event for Belarus. "It, indeed, sends a very good signal, including to foreign markets. It shows that despite the challenging times, Belarus is attractive for foreign investors. It is very encouraging that the goal of this loan - support for small and medium business - follows the trend for the development of our economy," he said.

Valdas Vitkauskas, EBRD Senior Banker and Head of the Financial Institutions team in Belarus, said that the agreement with BNB Bank is the first deal to attract European investments to Belarus after a rather long period. "It can be called a breakthrough because this is not just a declaration, not just words but real funds invested by private partners," he said.

The European Bank for Reconstruction and Development founded in 1991 invests in projects that facilitate transition to an open market economy and promote private initiative and entrepreneurship.

OAO BNB Bank was founded in 1992. The shareholders of the Bank are the largest Georgian bank AO Bank of Georgia (79.99%) and the International Finance Corporation (19.99%), Kazinform has learnt from BelTA.