Regional TFP: Oschadbank



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

04 Oct 2016



PSD disclosed:

30 Aug 2016

Translated version of this PSD: Ukrainian

Project Description

A facility of up to EUR 50 million under the Trade Facilitation Programme (TFP) for PJSC State Savings Bank of Ukraine ("Oschadbank").

Project Objectives

The project is undertaken within a broader effort aimed at facilitating Oschadbank's commercialisation and preparation for eventual privatisation in the context of the state-owned banks' reform program that is developed and being implemented by the Government of Ukraine ("GoU"). This effort will include several stages of financing and Technical Cooperation (below) over a period of up to five years, beginning with the TFP facility and an associated Technical Cooperation Project. The subsequent stages of a broader cooperation in preparation for the privatisation are linked to and conditional upon the progress in (i) improvement of corporate governance; (ii) commercialisation of operations, and (iii) operational overhaul of Oschadbank.

In addition, the project will directly help to enhance international trade involving Ukrainian companies.

Transition Impact

The TFP facility will support Oschadbank's trade finance transactions at a time when markets remain largely closed for Ukrainian borrowers . As a new partner bank, Oschadbank will benefit from advisory consultancy services for newly joined banks issuing trade financing instruments, to build-up institutional capacity in trade finance. Oschadbank staff will benefit from access to TFP's e-learning programme as well as interactive workshops and seminars covering best practices of various trade finance topics.

Parallel pre-privatisation assistance, facilitated by the Technical Cooperation Project, will prepare the bank for an eventual privatisation, thus contributing to the promotion of competition and private ownership in a banking sector with a currently growing market share of state-owned banks (30 per cent as of end H1 2016).

Client Information

Oschadbank, 100 per cent owned by the state, is a Ukrainian successor to Soviet Savings Bank. It is ranked second largest by assets and retail deposits. Through the largest branch network in the country with about 4,000 outlets and 30,000 employees, it provides services to almost 3,000 corporate, 126 thousand micro-, small and medium businesses (MSME) and 5.6 million active retail customers.

EBRD Finance Summary

EUR 50,000,000.00
TFP facility of up to EUR 50,000,000.00

Total Project Cost

EUR 50,000,000.00
TFP facility of up to EUR 50,000,000.00

Environmental and Social Summary

Categorised FI
Oschadbank will be required to comply with the EBRD's Performance Requirements 2, 4 and 9 which includes adherence to the EBRD's E&S Risk Management Procedures for Trade Finance.

Technical Cooperation

EBRD's pre-privatisation engagement with the Oschadbank will be supported by a comprehensive technical cooperation package. The overall objective of this package is to assist Oschadbank in institutional strengthening, through increasing commerciality and efficiency of its operations resulting in the improved investment attractiveness of Oschadbank as a whole.

Four pivotal areas have been identified which require expert technical advice. Since there are certain steps the bank and other stakeholders need to undertake to enable effective and fruitful provision of the TC support, the TC Project will be staged as follows:

Stage 1 will focus on: (i) Strengthening Capacities for MSME Lending, and (ii) Branch Network Centralization (centered on the increase of the operating efficiency of Oschadbank's vast branch network).

Stage 2 will address improvements in (iii) Risk Management and (iv) Budgeting Function. The launch of this stage will be subject to a number of actions to be taken by Oschadbank and Government of Ukraine as well as approval of the required legislative amendments by the parliament.

Company Contact Information

Alexander Buglak
+380 44 249-31-03
+380 44 247-86-95
12-G, Hospitalna str., Kyiv, UKRAINE, 01001

Business opportunities

For business opportunities or procurement, contact the client company.

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General enquiries

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

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