Project description
and objectives:
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Formerly Microfinance Bank Ukraine, ProCredit Bank Ukraine (PCU) was
established in December 2000 to provide financial services to micro and small
enterprises (MSEs) in Ukraine.
In 2003 EBRD participated in the capital increase of PCU for a total amount of
USD 5.1 million in order to strengthen the bank’s equity base, and enable it
to further expand its lending activities to MSEs in Ukraine.
Due to the dynamic development of PCU’s lending operations, there may be need
for near term future capital increases. EBRD plans to continue to support PCU
to maintain its shareholding.
EBRD also plans to provide a syndicated loan of up to USD 30 million to PCU.
By providing permanent access to financial services for MSEs throughout
Ukraine, the project will give direct support to private sector development.
It will also have a strong demonstration effect, encouraging other Ukrainian
banks to enter this market segment and follow sound banking principles.
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Transition impact:
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The project is expected to have a significant impact on the transition
process. ProCredit Bank Ukraine will continue to provide support to MSEs that
would otherwise have little or no access to formal sector finance. PCB Ukraine
also supports the development of the financial sector by operating as a best
practice institution committed to the principles of complete transparency and
strong corporate governance.
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The client:
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PCU was established in December 2000 by EBRD (20.0%), together with IFC
(20.0%), Western NIS Enterprise Fund (20.0%), the German-Ukrainian Fund
(20.0%), IMI (12.0%), and the Doen Foundation (8.0%) with a total equity
capital of EUR 10.0 million (USD 9.0 million). Since the start of operations,
PCU has expanded its lending activities into a total of 19 cities, and further
regional expansion is planned for 2006-2007.
As of March 2006 PCU had disbursed almost 84,000 loans to MSEs for a volume of
nearly USD 500 million and an average loan amount of USD 5,944. The
outstanding loan portfolio consisted of 32,148 loans for a total amount of USD
199.2 million.
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EBRD finance:
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Initial investment: Equity investment of EUR 2.0 million for a 20.0%
share and a senior loan of USD 9.0 million for on-lending to MSEs. The first
capital increase in the amount of USD 1.0 million was accompanied by a
senior loan of USD 11.0 million for on-lending to MSEs, which was partially
syndicated in the commercial market.
The EBRD intends to participate in the next capital increase for a total
amount of up to USD 3.0 million.
The EBRD also intends to provide a syndicated loan of up to USD 30 million to
PCU.
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Total project cost:
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Total project cost will be up to USD 33 million.
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Environmental impact:
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ProCredit Bank Ukraine will continue to carry out its operations in accordance
with the EBRD's “Environmental Procedures for Micro and Small Loans”. In
implementing these procedures, it will require its borrowers to comply, at a
minimum, with national/local health, safety, environmental, and public
consultation requirements.
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Technical
cooperation:
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Over time the EBRD has supported PCB Ukraine with direct technical assistance
funds provided by USAID and funds provided under the Ukraine Micro Lending
Programme (UMLP). However, the USAID contract finished in October 2005.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Dirk Haboeck
General Manager
ProCredit Bank Ukraine
Prospekt
Peremohy 107a
03115 Kyiv, Ukraine
Phone +38 044 5901020
Fax +38 044 5901001
Email: d.haboeck@procreditbank.com.ua
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EBRD contact:
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Yasuko Goto, Operation Leader: gotoy@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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