Raiffeisenbank AVAL SME II Loan Facility

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 36325

Status Complete

Location

Ukraine

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 36325

Status Complete

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

16 May 2006

Disclosure date

13 Apr 2006

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 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.

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. 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.

The Client

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.

EBRD Finance

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

Project Cost

USD 50 million.

Environmental Impact

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.

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 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.

Company Contact

Ms Victoria Masna, Financial Institutions

Phone/Fax : +380-44- 230-23-44

e-mail: vmasna@aval.com

Transition impact

ETI Score:75

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

Environmental and Social Documentation is not available for this project.

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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