RLF - Bank Lviv LCY loan 2024

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A senior unsecured LCY-denominated loan of up to EUR 20 million equivalent to be provided to Bank Lviv in four equal tranches to enable the bank's support to private small and medium sized enterprises ("SMEs") in Ukraine. The facility is under the EBRD Resilience and Livelihoods Framework

Project ID 55295

Status Disbursing

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

Company Contact Information

Andriy Vynnychuk
vynnychuk@banklviv.com
+380 93 116 9747
https://www.banklviv.com/
1, Serbska str., Lviv, Ukraine, 79008

Project ID 55295

Status Disbursing

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Approval Date

29 May 2024

Disclosure date

24 Apr 2024

RLF - Bank Lviv LCY loan 2024 (Ukrainian) (PDF, 0.31MB)

Project description

Project objectives

The Project will help Bank Lviv to maintain a sustainable funding base during the crisis and provide continued access to finance for private SMEs affected by the ongoing war on Ukraine. At least 30% of all financed sub-loans under the Project are to be directed on a best effort basis to support projects compliant with EBRD Green Economy Transition (GET) approach.

Transition impact

ETI Score:70

ject will support the Resilient and Inclusive TI qualities.

Resilient: reinforcing lending capacity of Bank Lviv and helping it to maintain sound funding profile
Inclusive: supporting the war affected private businesses in Ukraine.

Client information

BANK LVIV JSC

A regional MSME-focused bank in the western part of Ukraine with total assets of USD 280 million (ranked #27, 0.4% market share) and a loan portfolio of USD 183 million (ranked #18, 1% market share) as of YE2023. The bank has a head office in Lviv and operates through 19 branches (1 in Kyiv, 13 in Lviv region and 5 in other main cities in the western part of Ukraine).

EBRD Finance Summary

EUR 20,000,000.00

Includes a committed tranche of EUR 5 million equivalent and up to EUR 5 million equivalent for each of three uncommitted tranches, calculated based on the UAH-EUR exchange rate at the time of disbursement of the respective tranche of the loan.

Total project cost

EUR 20,000,000.00

Additionality

Response to the war in Ukraine: the Project is undertaken in the extraordinary circumstances of the ongoing war on Ukraine enabling medium and long-term financing of Ukrainian SMEs in the local currency.

Gender Additional: Senior managers of Bank Lviv will participate in EBRD-organized trainings covering the results of market diagnosis in Ukraine regarding the needs and market opportunities for the Women in Business program with PFIs in Ukraine.

Environmental & Social Summary

Categorised FI (ESP 2019): Bank Lviv is an existing client and will continue to comply with PRs 2, 4 &9, and further, implement and comply with the relevant EBRD's Environmental & Social (E&S) Procedures. An Environmental Social Monitoring Plan ("ESMP") has been developed under the previous transaction and its implementation status was reviewed during the due diligence.

Technical Cooperation and Grant Financing

TC: None

Non-TC: the Project will benefit from LCY Interest Rate Subsidy to reduce EBRD's funding cost in order to bring the interest rate of the UAH facility to acceptable market level. The expected source of donor funds for the LCY Interest Rate Subsidy is the United States' SME Local Currency Lending Programme in Ukraine.

Company Contact Information

Andriy Vynnychuk
vynnychuk@banklviv.com
+380 93 116 9747
https://www.banklviv.com/
1, Serbska str., Lviv, Ukraine, 79008

Implementation summary

PSD last updated

24 Apr 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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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RLF - Bank Lviv LCY loan 2024

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)