Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

11 Nov 2003



PSD disclosed:

28 Jul 2004

Project Description

Following the strong development of MSE lending at PCB Ukraine, EBRD has decided to extend a new loan in the total amount of US$ 11.0 million (€ 9.2 million).
By providing permanent access to financial services for MSEs throughout Ukraine, the proposed transaction will give direct support to the private sector development. It will also have a strong demonstration effect, encouraging other Ukrainian banks to enter this market segment and follow sound banking principles.

Transition Impact

The project is expected to have a significant impact on the transition process. PCB will continue providing support to MSEs that would otherwise have little or no access to formal sector finance.

The Client

PCB was established in December 2000 by EBRD (20.0%), together with IFC (20.0%), Western NIS Enterprise Fund (20.0%), the German-Ukrainian Fund (20.0%), IMI (12.0%), and the Doen Foundation (8.0%) with a total equity capital of € 10.0 million.
In December 2003 the statutory capital of the bank was increased by the existing shareholders on a pari-passu basis to € 14.4. Since the start of operations, PCB has expanded its lending activities to a total of 15 cities. As of June 2004 PCB disbursed over 34,500 loans to MSEs for a volume of USD 186.1 million (€ 155.1 million) with an average loan amount of US$ 3,945 (€ 3,287). The outstanding loan portfolio consisted of 15,739 loans for a total amount of US$ 75.4 million (€ 62.8 million).

EBRD Finance

The proposed transaction will be structured as an A/B loan, where EBRD will be a lender of record providing an A-loan in amount of US$ 4.0 million (€ 3.3 million) and International Finance Participation Trust (Canada) will be a syndicated partner providing a B-loan in amount of US$ 7.0 million (€ 5.9 million).

Project Cost

Total initial project costs amounts to US$ 11.0 million (€ 9.2 million), of which the EBRD share is US$ 4.0 million (€ 3.3 million).

Environmental Impact

PCB will continue to carry out its operations in accordance with the EBRD's “Environmental Procedures for Micro and Small Loans”.  In implementing these procedures, it will require its borrowers to comply, at a minimum, with national/local health, safety, environmental, and public consultation requirements.

Technical Cooperation

Technical Cooperation funding for approximately US$ 6.4 million has been provided by the EU, USAID and CIDA as a part of the overall technical cooperation funding provided under the Ukraine Micro Lending Programme (UMLP) to both local partner banks (PBs) and PCB. The German consultant company Internationale Project Consult GmbH (in cooperation with Financial Frontier International (USA), and Developpement et Finance International (France)) provides management services.

Company Contact

ProCredit Bank Ukraine 
86 Bozhenka Str.
Tel./Fax +380 44 490 60 80 / -81

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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