Project description
and objectives:
|
The proposed project is medium term financing to Joint-Stock Post Pension Bank
AVAL (“AVAL”) to support its lending to private micro, small and medium-size
companies. The project consists of a USD 25 million SME credit line for
on-lending to local SMEs and a USD 30 million MSE credit line for on-lending
to local MSEs.
The funds will be on-lent 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 AVAL 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:
|
AVAL is a universal commercial bank and is the second largest bank in Ukraine
with total assets of USD 2.9 billion and equity of USD 260 million at the end
of June 2005.
|
EBRD finance:
|
EBRD financing includes:
-
up to USD 25 million SME credit line for on-lending to private SME
sub-borrowers under Ukraine MSE/SME Lending Framework
-
up to USD 30 million MSE credit line for on-lending to private MSE
sub-borrowers under Ukraine MSE/SME Lending Framework
|
Total project cost:
|
USD 55 million.
|
Environmental impact:
|
Screened FI. AVAL will be required to comply with EBRD’s Environmental
Procedures for Small and Micro Loans and for Intermediated Financing through
Local Banks which require adherence to the Bank’s Environmental Exclusion and
Referral List, compliance with the applicable national environmental, health
and safety requirements and submission of an annual environmental report to
the Bank.
|
Technical
cooperation:
|
In the past TC has been received from the following donors: EU, US, Germany
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 AVAL.
Under the present operation, AVAL 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 Ruslan Butenko, Deputy Head of the Financial Institutions
Phone: +380-44-490-8707
Fax: +380-44-284-8838
e-mail: rbutenko@aval.com
|
EBRD contact:
|
Alexander Pavlov, Operation Leader: pavlova@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
|
