A three-year senior unsecured loan of up to €25 million in hryvna equivalent to be provided to Ukrgasbank to enable the bank's support to eligible MSMEs under SME Competitiveness Programme in the EU's Eastern Partnership. The loan will be available for disbursement in three tranches as either deliverable or synthetic hryvna-denominated facility. In addition to long-term financing, eligible sub-borrowers will receive technical assistance funded by the European Union and grant support in the form of investment incentives upon the completion of their investment projects.
The project will enable Ukrgasbank to finance long-term 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. At least 70% of all financed sub-leases are expected to be compliant with EBRD Green Economy Transition (GET) approach.
ETI score: 75
Competitive: the company will expand its MSME portfolio, predominantly in leasing business, with a focus on financing priority investments complying with EU directive(s), ultimately facilitating competitiveness of Ukrainian MSMEs;
Resilient: the company is expected to maintain adequate MSME portfolio quality.
ETI score: 75
UKRGASBANK PJSC JSB
PJSC Ukrgasbank is the fourth largest bank in Ukraine with a 7.8% market share by total assets (USD 5 billion) at YE2020. It is one of 13 systemic banks in Ukraine designated by the regulator. Ukrgasbank is a universal bank operating a country-wide network of 276 branches. The bank is one of the market leaders in green lending and trade finance in Ukraine. It is rated B by Fitch on par with the sovereign. The state of Ukraine via Ministry of Finance controls 98.7% of the bank's shares.
EBRD Finance Summary
Total Project Cost
Key sources of additionality under the project are (i) financing structure (medium-term tenor in support of investment activity, including in the local currency) and (ii) knowledge, innovation and capacity building (technical assistance under the programme will support timely realisation of EU-compliant investments in Ukraine).
Environmental and Social Summary
Categorised FI (2019 ESP). Ukrgasbank is an existing client of the Bank's Trade Facilitation Programme. The Environmental and Social (E&S) due diligence included review of the E&S questionnaire which was submitted by the client and interview with the client's dedicated staff. Ukrgasbank already has their environmental and social risk management procedures developed in compliance with IFC requirements and the ESDD confirmed their satisfactory performance and implementation. The existing E&S risk management system will only need to be updated to address some specific requirements of the EBRD. Potential renewable energy projects under this transaction will need to follow the E&S eligibility criteria for such investments. Ukrgasbank will be required to continue to comply with the Performance Requirements (PR) 2, 4 and 9, adhere to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit annual E&S reports to the EBRD on E&S matters and on the implementation of the PRs.
Technical Cooperation and Grant Financing
MSME sub-borrowers will benefit from financial incentives of up to 15 per cent of the lower of sub-loan disbursed amount or investment cost for eligible sub-projects, while the bank will receive technical assistance from dedicated consultants on the preparation and implementation of investment projects.
Company Contact Information
+380 50 353 5112
+380 44 594 1163
16-22, B. Khmelnytskoho St, Kyiv, 01030, Ukraine
PSD last updated
05 May 2021
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.