The increase by US$3 million the Bank's existing local currency loan agreement with JSC ProCredit Bank (Ukraine) from 2019 (the increased total loan amount will be US$25 million in UAH equivalent). The proceeds will be used to finance SMEs under the EBRD Financial Intermediaries Framework (FIF)
The Loan proceeds will be used for on-lending to private micro-, small and medium sized enterprises (MSMEs) in Ukraine. The Project will help to (i) support the Bank's client and an established market leader in SME lending in Ukraine; (ii) facilitate the bank's SME business growth; and (iii) diversify and strengthen bank's funding structure with medium-term local currency resources.
ETI score: 60
The project contributes to the objectives of the FIF, supporting the following transition qualities.
Competitive: PCBU will expand its MSME portfolio, with a focus on reaching regional clients and attracting new clients.
Resilient:The project aims to ensure prudent lending practices and adequate portfolio quality. The project will provide local currency financing to MSMEs and strengthen balance sheet of PCBU through matched medium term funding in LCY.
PROCREDIT BANK JSC
JSC ProCredit Bank Ukraine (PCBU) is a 100 per cent-owned subsidiary of ProCredit Holding AG & Co. KGaA (PCH, the Group) and one of the market leaders in financing small and medium-sized businesses in Ukraine.
EBRD Finance Summary
US$ 3 million equivalent (the proposed loan increase amount)
Total Project Cost
The Loan is additional because of its:
Financing structure: medium-term funding in LCY, currently restricted in Ukraine.
Standard-setting: clearly defined eligibility criteria for sub-borrowers as well as compliance with the EBRD environmental and social standards, covenants and reporting requirements, thus contributing to competitiveness and resilience of the financial sector as intended under the FIF Framework.
Environmental and Social Summary
Categorised FI (ESP 2014): PCBU will be required to comply with PRs 2, 4 & 9, 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. PCBU's borrowers will be required to comply with applicable national environmental, health and safety and labour requirements.
Technical Cooperation and Grant Financing
Company Contact Information
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PSD last updated
27 Aug 2020
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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).
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.