MINSK, 29 December – Belarusbank has secured a syndicated loan with a value of €151 million on 27 December.
In a bid to grow capabilities and bolster it’s capital base the bank has raised the money ahead of what could be a great 2019 for the business.
The money is to be issued in tranches for a period of 1.5 years and 2 years.
The cash is to be spent on general corporate purposes and to finance trade contracts of Belarusbank’s clients in a bid to grow the business and the ability to better serve clients.
The €151 million deal has been arranged by 14 financial institutions of Russia and other CIS states and was the first time three of the institutions involved had taken part in such a deal.
Belarusbank Deputy Chairman of the Board Alexander Polivko noted that the bank debuted on the international syndicated loans market in 2006. The latest deal has implied the high and growing level of trust investors have in Belarusbank. The agreement also demonstrates respect and professional skills of the organizers. “We are thankful to the organizing banks for their support and fruitful cooperation,” Alexander Polivko commented.
The news follows the
announcement in November that the European Investment
Bank (EIB) intends to invest €260 million in Belarus in 2019. EIB Vice-President Alexander Stubb made the
statement following a meeting with Belarus President Alexander Lukashenko on 21
November. The EIB vice president noted “We have some plans [to work with
Belarus] in the future. For instance, next year we intend to invest €260
Belarusbank is the largest financial and credit institution in Belarus as well as the leading Belarusian bank in terms of proprietary capital, assets, loans, and deposits. The bank, headquartered in Minsk, Belarus, was founded in 1922 and has enjoyed a dominant industry position. The bank’s charter capital exceeds Br2.669 billion. The bank’s net income in 2017 was $86 million. In 2018 Fitch rating agency gave the bank a long-term outlook of stable.
Further growth markets
Earlier in the year, Belarusbank bolstered it’s growing presence by partnering with global tech giants Samsung and Mastercard. The bank, together with Samsung Electronics and Mastercard, introduced a payment system to pay for purchases using the Samsung Pay service for its consumers. The new facility is available to holders of personal Mastercard debit cards issued by Belarusbank. This service is free of charge, and internet access is not required to perform a payment, payments with the use of the Samsung Pay service are quicker as compared to ordinary cards.
In addition to mobile payments in 2018 Belarusbank also became the first bank in the country to open a mortgage office. It offers consumers a variety of services referring to receiving real property loans, both for construction and purchase of new residential property as well as to buy residential property at the secondary market. The new office issues residential loans and provides the necessary services for transaction settlement, selection of accommodations, the performance of purchase or execution of a co-investment agreement with a property developer.
Danny Deegan is the Editor and proprietor of eurasianmarket.com. Born in the UK, currently working in financial services with an emphasis on equity investments and forex trading.