Mortgage Loan Businesshypothecary lending business
The Belgazprombank Commercial mortgage financing loans
Revenue from the planned operation is earmarked for on-lending to MSEs in Belarus and should enable the Belgazprombank to offer appropriate financing instruments and related support to the MSME sector, which is heavily undersupplied. First corporate mortgage loan granted by the Bank in Belarus. This loan has a total amount of up to EUR 20 million and a term of up to 7 years.
Belgazprombank's longer term should enable it to offer suitably restructured mortgage loans to suit the needs of domestic companies to finance their investments in offices, branch extensions, storage facilities, etc. The Bank's aim is to increase the liquidity of the bank's portfolio and to increase its liquidity. MSME syndicated loan will act as a catalyser for the mobilisation of debt finance and improved market entry of domestic business banking into overseas financial centres.
Using mid- to long-term outside funding, it will continue to help provide assistance to privately-owned MSMEs in Belarus. Business Mortgage Financing Loan will make it easier to structure corporate mortgage business adequately. This will also help to establish best practices in commercial mortgage credit in Belarus, which include (1) an appropriate rating of the borrower's exposure, (2) a better adjustment of the tone and redemption plan to the type of base value, and (3) appropriate disclosures to the sub-borrower of the legacy exposure to foreign exchange loan risks.
The Belgazprombank is a medium-sized Belorussian financial institution (7th place by wealth at the end of June 2013) established in 1990. It is anticipated that the planned deal will have a term of up to 5 years. Up to EUR 20 million EUR preferred uncollateralised loan with a term of up to 7 years for on-lending to retail companies and sole traders in Belarus for the purposes of corporate mortgage loans.
Borrower financing through the BGPB line of credit under this scheme must meet EHSL (Environmental, Health, Security and Labour) standards. 60/2, Pritytskogo St., For business opportunity or sourcing, please consult the customer organization.