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| Summary of Project Information (SPI) |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
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| Project number | 11719 |
| Project name | Priorbank Trade Facility |
| Country | Belarus |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Priorbank Joint Stock Company |
| Environmental category | C |
| Date SPI disclosed | April 8, 2003 |
| Projected board date | May 9, 2003 |
| Date revised SPI disclosed | April 8, 2003 |
| Status | Active |
| Previous Events | Invested: September 24, 2003
Signed: June 24, 2003
Approved: May 23, 2003 |
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| Description of company and purpose of project |
Priorbank (or the bank), a leading private bank, is the third largest in Belarus, with net worth of $28 million and assets of $284 million equivalent as of December 31, 2002. In addition to its corporate and SMEs activities, Priorbank actively works with trading and retail sectors and provides a wide range of other financial services. The bank’s main strategic goal is to build on its leading position in the market by providing comprehensive corporate and retail client services based on advanced banking technology and professional management. The bank is planning to use IFC funding to expand its lending portfolio to medium-sized private corporates in various sectors of the economy.
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| Project sponsor and major shareholders of project company |
Priorbank was established in 1989 and has operated since then as a universal commercial bank. Priorbank’s main shareholder is Raiffeisen International Beteiligungs AG, a subsidiary of Vienna-based Raiffeisen Zentralbank Osterreich AG (RZB-Austria), with 50%. Belarussian shareholders, including several companies and management, as well as EBRD hold the rest of the bank’s equity.
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| Total project cost and proposed IFC investment |
The proposed IFC's investment consists of a senior loan of up to $14 million in Priorbank for IFC’s own account.
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| Location of project and description of site |
Priorbank is headquartered in Minsk and has a network of 20 branches throughout Belarus.
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| Project Development Impact and IFC's Role |
Development Impact
IFC funding will boost the Priorbank's capacity to provide term loans to the private sector and will thus support a sector of the Belarussian economy that will play a key role in achieving sustained economic growth. The project will support development of a leading private bank in Belarus, a country where the state still dominates most of the economy.
IFC Role
In this project, IFC will be playing an important role in increasing the access of private Belarussian companies to term funding and will give Priorbank an opportunity to broaden the range of its financial products. IFC's support to Priorbank, which is one of the few independent sources of finance to private sector in Belarus, will also support the process of diversification of the economy. Finally, IFC’s support for Priorbank will reconfirm its dominant position as the most important private sector bank in Belarus and further improve its access to funding from international sources.
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| Environmental and social issues - Category C |
This a Category FI Type 1 project according to IFC's environmental and social review procedure. Priorbank will develop and implement an environmental management system to ensure that its borrowers comply with local and national environmental, health and safety standards and also appoint two bank officers to receive appropriate environmental training. Priorbank will provide IFC with an annual environmental report on the ongoing implementation of its environmental management system.
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| To contact the project company, please write to: |
Mr. Sergey Kostyuchenko, Chairman of the Board
31- A, V.Khoruzhey Str, Minsk 220002,
Republic of Belarus
Phone: 375 17 217 3401
Fax: 375 17 234 1554 |
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