Summary of Proposed Investment
Project Number
28582
Company Name
BELARUSKI NARODNY BANK
Date SPI Disclosed
Sep 22, 2009
Country
Belarus
Industry
Financial Markets
Projected Board Date
Oct 30, 2009
Status
Completed
Sector
Commercial Banking - Microfinance and Small Business
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : May 26, 2010
Signed : Jun 24, 2010
Invested : Jul 9, 2010
Project Description
The project involves the purchase of an equity stake of up to 20% in Belarusky Narodny Bank (“BNB”) and a senior loan for SME finance of up to $5 million; a GTFP line in an amount to be determined may also be a part of IFC’s financial package. IFC’s existing client, Bank of Georgia, (“BoG”) has purchased a controlling stake in BNB, with a plan to transform the limited existing operations into an SME bank. BoG and the existing minority shareholder would participate in a new share issue to expand the Bank and meet new regulatory capital requirements for banks operating in Belarus.
For BoG, Belarus represents an opportunity to expand outside of its home market (where it is the largest bank) into a growth market, and in particular, one with a limited SME banking market. Since the Belarusian economy is 5-times larger than Georgia’s and yet much more limited in the development of SME banking, the opportunity has great potential for BoG.
BNB is a small Minsk-based bank with CAR of over 50%; Tier 1 equity is over 50% of assets. The bank has historically turned a small profit by serving a small number of Belarusian companies, most of which would be considered medium-sized or even small enterprises.
For BoG, Belarus represents an opportunity to expand outside of its home market (where it is the largest bank) into a growth market, and in particular, one with a limited SME banking market. Since the Belarusian economy is 5-times larger than Georgia’s and yet much more limited in the development of SME banking, the opportunity has great potential for BoG.
BNB is a small Minsk-based bank with CAR of over 50%; Tier 1 equity is over 50% of assets. The bank has historically turned a small profit by serving a small number of Belarusian companies, most of which would be considered medium-sized or even small enterprises.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Constantin Tsereteli
Acting CEO
87a Nezalezhnasty Ave.
Minsk 220012 Belarus
Ph: +375 17 2801683, Fax: +375 17 2807447
Acting CEO
87a Nezalezhnasty Ave.
Minsk 220012 Belarus
Ph: +375 17 2801683, Fax: +375 17 2807447
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster