Project description
and objectives:
|
The proposed project comprises an MSE credit line and an SME credit line to
Forum bank, Kyiv, Ukraine. The MSE credit line will be for USD 7 million and
the SME credit line for USD 10 million with a tenor of 4 and 5 years
respectively. The funds will be on-lent by Forum to micro, small and medium
sized enterprises, whose demand for financing is high and further growing. The
MSE sub-loans will be increasingly directed to rural and agricultural MSEs.
The loans to SME sector would meet the demand for investment finance from
local businesses.
|
Transition impact:
|
The long-term financing received from EBRD will enable Forum to on-lend to
small companies which traditionally have little or no access to long-term
finance. The extension of the MSE programme to rural and agricultural regions
helps easing regional and economic inequalities. Sub-loans from the MSE/SME
credit lines have a positive impact on local economic situation and employment
level as micro, small and medium sized companies, which represent the backbone
of the economy, are enabled to grow and develop further.
|
The client:
|
Forum bank is the 12th largest bank in Ukraine with total assets of USD 362.4
mln and total capital of USD 40.1 mln at the end of September 2004. Its
primary strategy is to provide a wide range of financial services to corporate
and private clients. Since 2001 the bank has been a partner under the SME II
Credit Line project, as well as a participating bank under the Trade
Facilitation Programme.
|
EBRD finance:
|
Direct loans
MSE loan: USD 7 million
SME loan: USD 10 million
|
Total project cost:
|
USD 17 million.
|
Environmental impact:
|
Forum will follow EBRD’s environmental procedures for Intermediated Financing
through Local Banks and for Small and Micro Loans in relation to all
sub-loans financed through the SME and MSE credit line correspondingly,
including adherence to the EBRD’s Environmental Exclusion List, compliance
with local/national health, safety, environmental and public consultation
requirements and submission of Annual Environmental Reports to the Bank.
|
Technical
cooperation:
|
In the past TC has been received from the following donors: EU, US, Germany,
Canadian and Dutch governments under the SME II Credit Line project for SME
and MSE programmes. The funds were used to develop lending operations, train
lending staff and for institution building in participating banks, including
Forum.
Under the present operation, Forum will continue to receive TC for the
implementation of the MSE programme to build up further the rural and
agricultural lending component including the development of loan products
tailored to the needs of this target group.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
Mr. Alexei Pavlov – Head of International Banking;
Tel: +38(0)442053559
Email: apavlov@forum.com.ua
|
EBRD contact:
|
Roman Piven, Operation Leader: pivenr@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
|
