FIF - EaP SMEC - Oschadbank



Project number:


Business sector:

Financial institutions

Notice type:


Approval date:

08 Jun 2021



PSD disclosed:

07 Jun 2021

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

An up to four-year amortising senior unsecured loan of up to €25 million equivalent to be provided to JSC "Oschadbank" for on-lending to eligible micro, small and medium-sized enterprised ("MSMEs") under SME Competitiveness Programme in the European Union's (EU) Eastern Partnership. In addition to long-term financing, eligible sub-borrowers will receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their investment projects. 

Project Objectives

The project will enable the company 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 per cent of all financed sub-loans are expected to be compliant with EBRD Green Economy Transition (GET) approach.

Transition Impact

ETI score: 75

Competitive: the Company will expand its MSME portfolio, with a focus on financing priority investments complying with EU directive(s), ultimately facilitating competitiveness of Ukrainian MSMEs; and

Resilient: the Company is expected to maintain adequate MSME portfolio quality.

Client Information


JSC Oschadbank is a 100 per cent state-owned bank, ranking the second largest by assets (13% market share) and deposits (13% market share) as of YE2020 out of 74 banks. With around 1,800 branches and over 27,000 employees, it provides services to over 3,000 corporate, almost 200,000 MSME and 7 million retail customers.

EBRD Finance Summary

EUR 25,000,000.00

Total Project Cost

EUR 25,000,000.00


Key sources of additionality under the project are:

- Financing structure: long term tenor supporting longer investments, including in the local currency

- 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 (ESP 2019). Oschadbank is an existing client of EBRD and performance on environmental and social (E&S) issues, in the context of existing operations, has been satisfactory. Given the focus of the proposed project on MSMEs, and the aim to upgrade technology and equipment to meet EU standards, it is not anticipated that the project portfolio will be associated with significant E&S risks. Any such risks will be mitigated by the application of the EBRD's Performance Requirements 2, 4 and 9, and in particular, the implementation of an agreed environmental and social management system (ESMS). EBRD will work with Oschadbank to review the current ESMS and to assist in further developing the ESMS as required to ensure the system is appropriate for the proposed project and will be applied to all business lines across the entire portfolio. E&S risks will be additionally addressed through consultancy support provided to ensure that sub-projects meet the aims of the facility i.e. compliance with EU standards. The consultants will also provide support to ensure that national requirements on environment, health and safety and labour are met. Finally, Oschadbank will have to provide annual E&S reporting to the EBRD.

Technical Cooperation and Grant Financing

MSME sub-borrowers will benefit from financial incentives (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 towards investment projects preparation and implementation.

Company Contact Information

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

PSD last updated

07 Jun 2021

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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