A 4-year amortising senior unsecured loan of up to € 7.5 million to be provided to JSC Joint Stock Bank "Lviv" for on-lending to eligible MSMEs under the DCFTA Programme, (known as EU4BUSINESS EBRD Credit Line - Finance and Advisory Programme Supporting SME). The loan will be available for disbursement as a synthetic UAH facility.
The proposed project will enable the participating financial institution to finance sub-loans under the Programme, supporting investments of Ukrainian MSMEs in upgrading their technology and equipment necessary to meet EU standards in terms of product quality, health and safety measures and environmental preservation. Sub-borrowers will benefit from financial incentives for eligible sub-projects, while Bank Lviv will receive technical assistance from the Programme dedicated consultants towards investment projects preparation and implementation.
ETI score: 80
Competitive: Bank Lviv will expand its MSME portfolio with a focus in financing DCFTA priority investments complying to EU Directive(s), ultimately facilitating competitiveness of Ukrainian MSMEs.
Resilient: Bank Lviv will be expected to maintain adequate portfolio quality.
BANK LVIV JSC
A regional MSME-focused bank in Western Ukraine with total assets of US$ 135 million M (#31 out of 75 banks in Ukraine) and a loan portfolio of USD 82 million as of year end 2019. The bank is serving MSME and retail clients through its head office in Lviv and 21 regional branches
Bank Lviv is jointly controlled by Swiss-based responsAbility Participations AG (51 per cent) and an Icelandic citizen, Margeir Petursson (49 per cent).
EBRD Finance Summary
Includes € 5 million committed tranche and up to € 2,5 million uncommitted tranche.
Total Project Cost
Key sources of additionality under the project are (i) Financing structure (long term tenor supporting longer investments in the local currency) and (ii) Knowledge, innovation and capacity building (the Programme technical assistance supporting timely realisation of DCFTA eligible investments in Ukraine).
Environmental and Social Summary
Categorised FI (ESP 2014). BL is an existing client and will be required to comply with EBRD Performance Requirements 2, 4 & 9, continue to implement and comply with the relevant EBRD's Environmental & Social (E&S) Risk Management Procedures, and submit annual environmental and social reports to the Bank. An Environmental Social Monitoring Plan ("ESMP") which was agreed with EBRD has largely been implemented. The PFI has an E&S policy and procedures in place to manage E&S risks in its lending as well as systems and policies to manage HR and OHS in line with Performance Requirements 2 and 4. The expected Green Economy Transition (GET) component associated with this project is 60 per cent.
Technical Cooperation and Grant Financing
MSME sub-borrowers will benefit from financial incentives for eligible sub-projects, while Bank Lviv will receive technical assistance from the Programme dedicated consultants towards investment projects preparation and implementation.
PSD last updated
11 Mar 2020
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