Priorbank receives USD 15 million loan from FMO
Vienna, 12 July 2010
Priorbank JSC, the Belarusian subsidiary of Raiffeisen International Bank-Holding AG, received the first tranche of a USD 15 million loan from Netherlands Development Finance Company (FMO).
The facility is intended as a credit line to provide finance to small and medium-sized enterprises and has a tenor of five years, with a grace period of two years.
"This deal is of high importance not only for Priorbank, but also for the whole economy of the country. At present, there is great demand for credit resources from small and medium-sized enterprises. We understand that this segment has huge development potential and needs financing. Due to this deal, Priorbank can offer SMEs both short-term and long-term loan facilities", commented Sergey Kostyuchenko, CEO of Priorbank.
Steven Duyverman, Manager Financial Institutions at FMO, commented, "At FMO we strongly believe in the power of entrepreneurship as a driver for economic development. With this loan, Priorbank will be able to maintain its positive role in the transition economy of Belarus. Through its position as an independent bank with Raiffeissen International as a strong and reputable shareholder, it will keep on contributing to increased competition in and further development of the financial sector of Belarus."
Priorbank, the largest privately-owned bank in Belarus, and FMO have been cooperating previously. FMO participated in a syndicated loan package on behalf of Priorbank, intended to provide finance to small and medium-sized enterprises and to provide mortgages. This facility had its final disbursement in 2009. This new bilateral loan expresses FMO's confidence in Priorbank to further develop and promote private entrepreneurship.
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of EUR 4.6 billion, FMO is one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.
Priorbank JSC is a subsidiary of Raiffeisen International Bank-Holding AG (87.74%). In 2009, it was the "Most active Issuing Bank in Belarus" under the EBRD's Trade Facilitation Programme. Euromoney - one of the world's leading monthly publications for global banking, finance and capital markets - chose Priorbank as "Best Bank in Belarus" in 2009. According to the Financial Times publication The Banker, it was also "Bank of the Year in Belarus" in 2009.
Raiffeisen International operates one of the largest banking networks in CEE, covering 17 markets across the region through subsidiary banks, leasing companies and a range of other financial service providers. The group's 56,000 employees service more than 15 million customers through around 3,000 business outlets. Raiffeisen International is a fully-consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB), which indirectly owns about 72.8 per cent of the common stock. The remainder is in free float, with the shares listed on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Raiffeisen Banking Group Austria, the country's largest banking group.
For further information please contact Michael Palzer (+43-1-71 707-2828, michael.palzer@ri.co.at).
