Belgazprombank was established in 1991 as Bank Ekorazvitiye by a group of private shareholders. It was renamed as Bank Olimp in 1993 and again as Belgazprombank in 1997 after the Russian Gazprombank purchased a majority shareholding. Currently, Gazprombank and Gazprom, each hold approximately 34% of the Bank, while Beltransgas, the state-owned gas distribution company, is Belgazprombank’s third largest shareholder with 23.5%. The remaining shares of Belgazprombank are held by the Belarussian Ministry of Economy (8.6%) and the Bank’s employees.

The proposed IFC’s investment consists of a senior loan of up to $5 million to Belgazprombank for IFC’s own account.

5.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.0
Equity

* These investment figures are indicative

Belgazprombank is headquartered in Minsk and has a network of 4 regional branches in the main commercial centers of Belarus and 3 branches in Minsk. The Bank’s loans funded with IFC’s loan can be made to private SMEs throughout the country.

With this project, IFC is expected to make a high impact contribution to economic development, poverty reduction, and capital market development in Belarus. - Significant Contribution to Economic Development. Belarus’ underdeveloped banking sector is hindering its economic growth and constraining access to longer term financing by companies. The provision of finance to Belgazprombank by IFC is expected to allow a greater degree of private sector participation in the economy and bolster a more competitive environment for financial markets that will help fuel economic growth. Financial Market Development. IFC’s investment is expected to strengthen one of the leading non-state sector banks in Belarus by providing its first non-government-guaranteed long-term loan. Over time, this could induce a demonstration effect by bringing new players and financial instruments into the Belarussian capital markets. This could lead to a number of benefits to consumers, including enhanced service quality, and to provide much needed term lending for regional entrepreneurs. In this project, IFC will: - Assist the Bank in developing access to term finance on commercial terms without a government guarantee; - Help one of the most active lenders to the private sector in Belarus to expand its financing to SMEs; - Improve access to long-term finance for SMEs in Belarus

This is an FI type 1 project. The Bank will be required to demonstrate that the environmental capacity developed for EBRD''s SME credit lines is adequate to address the environmental issues associated financing under this credit line, and to make any adjustments that may be required.
Location of environmental documents in locally affected community