Project description
and objectives:
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The proposed project is medium term financing to Joint-Stock Post Pension Bank
AVAL (“AVAL”) to support its lending to private small and medium-size
companies. The project consists of a USD 50 million SME credit line for
on-lending to local SMEs.
The funds will be on-lent to small and medium sized enterprises, whose demand
for financing is high and further growing. The loans to SME sector would meet
the demand for investment finance from local businesses.
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Transition impact:
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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. Sub-loans from the SME credit line have a positive impact on local
economic situation and employment level as small and medium sized companies,
which represent the backbone of the economy, are enabled to grow and develop
further.
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The client:
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AVAL is a universal commercial bank and is the second largest bank in Ukraine
with total assets of USD 3.8 billion and equity of USD 345 million at the
end of 2005.
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EBRD finance:
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EBRD financing includes up to USD 50 million SME credit line for on-lending
to private SME sub-borrowers under Ukraine MSE/SME Lending Framework
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Total project cost:
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USD 50 million.
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Environmental impact:
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Screened FI. AVAL will be required to comply with EBRD’s Environmental
Procedures for SME 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.
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Technical
cooperation:
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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 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 receive a technicall assistance,
funded by the European Union. The TC funds will be used to facilitate the
review and upgrade of the SME lending processes in Aval. This would require
the bank and its staff to introduce new segmentation of the SME customers,
review of the SME loan products and lending procedures and re-training of the
loan officers in branches and points of sale.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Ms Victoria Masna, Financial Institutions
Phone/Fax : +380-44- 230-23-44
e-mail: vmasna@aval.com
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EBRD contact:
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Alexander Pavlov, Operation Leader: pavlova@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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