Project description
and objectives:
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The proposed project will provide Rietumu Banka with a EUR 60 million
syndicated loan as medium-term funding for providing loans to corporate
customers in Latvia, many of which would be SMEs. Using an A/B loan structure
the EBRD intends to book EUR 20 million for its own account and to syndicate
EUR 40 million.
Following this first exposure to the commercial debt market, the bank is
expected to be in a stronger position to attract additional funding at longer
maturities in the future.
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Transition impact:
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The proposed loan will provide Rietumu Banka access for the first time to the
international commercial debt market. Consequently the loan will improve the
bank’s balance sheet maturity structure and diversify its funding base,
enabling the bank to further expand its corporate lending operations and thus
increase the competition among banks in Latvia.
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The client:
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Rietumu Banka is the fourth largest bank among 23 banks in Latvia with a
market share of 8% by assets. The bank specialises as a corporate bank and has
its headquarters in Riga and representative offices in countries including
Estonia, Lithuania, Russia, Ukraine, Belarus and Kazakhstan.
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EBRD finance:
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Using an A/B loan structure the EBRD intends to book EUR 20 million for its
own account and to syndicate EUR 40 million.
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Total project cost:
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EUR 60 million.
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Environmental impact:
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Rietumu Banka will need to adopt the EBRD’s Environmental Procedures for Local
Banks including ensuring compliance with the applicable national
environmental, health and safety legislation, adherence with EBRD’s
Environmental Exclusion and Referral List and submission of annual
environmental reports to the Bank.
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Technical
cooperation:
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During 2003 Rietumu Banka benefited from technical assistance provided by the
EU Phare programme under the SME Finance Facility.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr Rolf Fuls, Executive Vice President
Rietumu Banka
Tel. +371 7 025 224
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EBRD contact:
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Viesturs Bernans, Operation Leader: bernansv@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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