FIF - DCFTA - Bank Lviv SME Facility



Project number:


Business sector:

Financial institutions

Notice type:


Approval date:

17 Mar 2020



PSD disclosed:

11 Mar 2020

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

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. 

Project Objectives

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. 

Transition Impact

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.

Client Information


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

EUR 7,500,000.00

Includes € 5 million committed tranche and up to € 2,5 million uncommitted tranche.

Total Project Cost

EUR 7,500,000.00


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

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 EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 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 following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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