IKB CO-FINANCING RISK PARTICIPATION AGREEMENT

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 19060

Status Complete

Location

Regional

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 19060

Status Complete

Location

Regional

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

13 Mar 2001

Disclosure date

27 Feb 2001

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The project would consist of an un-funded risk participation facility provided by the EBRD to IKB Deutsche Industriebank AG, a bank incorporated in Germany.

By freeing up IKB‘s risk capital, the operation would efficiently support the financing of SMEs on a larger scale through a wholesale vehicle. Facilitating the entry of middle-tier foreign companies can promote growth of SMEs in the local economies through the creation of joint ventures and networks of production outsourcing, sub-contracting and distribution.

Transition Impact

The proposed facility would effectively support the financing of German-owned SMEs operating in the region by capitalising on IKB’s sector experience and strong project pipeline.

Through economic interaction with local suppliers and distributors, this project is expected to have an indirect effect on the local SME sector. The unavailability of long-term finance for SMEs is a severe constraint that this facility aims to ease.

The Client

IKB is the leading commercial provider of long-term, fixed rate investment finance to small and medium-sized enterprises (SMEs) in Germany with an impressive track record.

Under the un-funded risk participation facility, the EBRD would risk-share a portion of IKB’s loans to SMEs which are legal entities based in the Czech Republic, Hungary, Poland, the Slovak Republic and Slovenia and either fully or majority owned by German companies. The Bank would essentially rely on IKB’s proven appraisal and monitoring procedures, taking direct exposure to its SME borrowers.

EBRD Finance

Under the facility, the EBRD would risk-share 35 per cent of the IKB loan pool, consisting of eligible, existing and future loans extended by IKB between 1996 and the end of the commitment period (i.e. two years after the signing of the Risk Participation Agreement).

The proceeds of the loans risk-shared by the EBRD must be used by the German SME borrowers for the financing of acquisition, expansion and/or modernisation investments and related working capital needs in the region.

Project Cost

The IKB loan pool will be a principal amount of up to EUR200 million, out of which the Bank would risk-share 35 per cent, i.e. up to EUR70 million under the facility.

Environmental Impact

Projects submitted for inclusion in the loan pool will undergo an environmental appraisal based on the EBRD’s Environmental Procedures for Banks. The appraisal will confirm, among other things, that projects comply with national requirements for environment, health and safety and do not involve activities included on the Bank’s Environmental Exclusion List.

Technical Cooperation

None.

Company Contact

Transition impact

ETI Score:40

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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