Latvijas Unibanka (syn loan)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 6784

Status Complete

Location

Latvia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 6784

Status Complete

Location

Latvia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

05 Oct 1999

Disclosure date

20 Sep 1999

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Syndicated loan facility of up to EUR 45 million under a standard A/B loan structure. The A loan for the EBRD’s own account is up to EUR 15 million for a term of five years and the B loan for participant banks is up to EUR 30 million for three to five years. The proceeds of the loan will be used by LUB to extend its private sector lending activities.

Transition Impact

The transition impact of this project would be twofold. The provision of a syndicated loan to a leading financial institution in Latvia would offer a strong demonstration effect to international investors who are currently reluctant to consider financing in the EBRD’s countries of operations following the 1998 Russian crisis. Secondly, as the second largest bank in Latvia, LUB’s financial position and its ability to retain the confidence of the population are important to the health of both the Latvian banking and private enterprise sectors. The syndicated loan, therefore, will strengthen one of the key players in the Baltic economy, and will support LUB in meeting the demand by private sector enterprises for medium-term financing.

The Client

A/S Latvijas Unibanka (LUB) is one of the two largest banks in Latvia. LUB is majority owned by Skandinaviska Enskilda Banken AB (SEB). LUB will use the proceeds of the loan to expand its private sector loan portfolio.

EBRD Finance

Syndicated loan of up to EUR 45 million under an A/B loan structure. The EBRD will take up to EUR 15 million of direct exposure, and the balance will be syndicated among participating banks. Bankgesellschaft Berlin (BGB) has underwritten EUR 20 million of the B loan. The loan will be disbursed in two tranches. The first tranche will comprise 50-75 per cent of the total loan amount. The second tranche will be disbursed after 80 per cent of the first tranche has been used by LUB.

Project Cost

Up to EUR 45 million, a third of it to be financed by the EBRD.

Environmental Impact

LUB will carry out its operations in accordance with the EBRD's Environmental Procedures. These provide for the integration of environmental due diligence into LUB's credit appraisal processes and a requirement that ultimate borrowers comply, at a minimum, with national and local health and safety and environmental regulations and standards and public consultation requirements. LUB will submit annual environmental reports to the EBRD.

Technical Cooperation

None.

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search