Project summary document

Project description
and objectives:

An ECU 120 million facility, comprising ECU 80 million in the form of a sovereign-guaranteed apex credit line and ECU 40 million for bank-to-bank credit lines. Both facilities will be used to finance micro, small and medium-sized private enterprises in Ukraine.

The project aims to meet three main objectives:

(i) to continue the efforts started under the first line of credit to assist promising Ukrainian private banks in their efforts to become effective financial intermediaries and competitive, creditworthy institutions, by improving their credit skills and assisting in their institutional development;

(ii) to provide long-term, hard currency funding to a broad range of private firms, including small and medium-sized enterprises as well as larger companies;

(iii) to take direct exposure on the best Ukrainian banks, and to contribute to the lowering of their cost of borrowing by helping them to gain access to the international syndication market.

Transition impact:

The transition impact of the project rests with its dual benefit to the banking sector and the local private corporate sector. Banks deemed eligible under the credit line will be subject to strict prudential requirements. Furthermore, banks will undertake institution-building programmes to improve and develop their proprietary strategy and operations. The domestic private sector companies will benefit from the availability of long-term, hard currency funding.

The client:

The National Bank of Ukraine will borrow the funds under the ECU 80 million facility for on-lending to qualifying private Ukrainian banks. These will in turn on-lend the funds to private micro, small and medium-sized enterprises.

Under the ECU 40 million facility, private Ukrainian banks will borrow directly from the EBRD without a sovereign guarantee. Funds will be on-lent to micro, small, medium and larger enterprises.

EBRD finance:

• Apex credit line for ECU 80 million.
• Direct credit line for ECU 40 million.

Total project cost:

ECU 120 million.

Environmental impact:

The project has been classified FI, which means that it does not require an environmental audit.

Technical
cooperation:

Technical cooperation will be required under the ECU 80 million apex credit line.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

EBRD contact:

Svetlana Tsyba, Operation Leader: tsybas@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com