14 Sep 2018 17:35

EBRD organizing 50 mln euro syndicated loan for Belinvestbank

MINSK. Sept 14 (Interfax) - The European Bank for Reconstruction and Development (EBRD) plans to organize a syndicated loan of 50 million euro for Belarusian bank Belinvestbank, the head of the EBRD office in Belarus, Alexander Pivovarsky, told reporters in Minsk on Friday.

"By the end of the year, we are organizing a syndicated loan for Belinvestbank. We plan for two-thirds of the amount to be contributed by other investors," Pivovarsky said, adding that the EBRD expects to conclude the loan before the end of the current year.

The syndicated loan will be for a term of no more than three years, which is the term for which the EBRD is prepared to lend to the bank, the EBRD office told Interfax, adding that the loan might include a number of tranches with different terms.

European banks are expected to be the main lenders.

In addition, the EBRD has completed due diligence of Belinvestbank and expects to purchase a stake before year-end. "Due diligence of Belinvestbank has been completed, but for the time being we cannot comment on the commercial issues," he said.

During the discussion of the terms of the Belinvestbank's privatization, "we have had no fundamental disagreements with the government," he said, adding: "Time is simply needed to discuss technical issues, the management system, commercial elements, the value."

The EBRD plans to increase its loan portfolio in Belarus to at least 700 million euro before the end of 2018. "As of the end of the year our portfolio will grow by no less than 200 million euro and total about 650 million-700 million euro," Pivovarsky said. Since the beginning of the year the EBRD has signed 16 deals in Belarus totaling $270 million and expects to conclude a number of other deals before year-end.