A 4-year amortising senior unsecured local currency denominated loan of up to EUR 10 million equivalent (in two equal tranches) to be provided to Piraeus Bank ICB JSC ("Piraeus Bank") for on-lending to private small and medium-sized enterprises ("SMEs").
The transaction will help Piraeus Bank to (i) diversify its funding structure with medium-term local currency resources and (ii) support SME loan portfolio growth.
At least 30 per cent of all financed sub-loans under the project are to be directed to support projects compliant with EBRD Green Economy Transition (GET) approach.
ETI score: 60
Competitive: Piraeus Bank will expand its SME loan portfolio with a focus on reaching regional Ukrainian SMEs and attracting new clients.
Resilient: Piraeus Bank is expected to ensure prudent lending practices and maintain adequate loan portfolio quality.
PIRAEUS BANK ICB JSC
Piraeus Bank ICB JSC is a subsidiary of the largest financial group in Greece - Piraeus Financial Holdings S.A. operating in the country since 2007. In Ukraine, Piraeus Bank focuses on serving local SMEs operating in the agriculture, food processing, trade and manufacturing sectors. Total assets of the bank amounted to USD 180 million at the end of 3Q 2021. The bank has a network of 15 regional branches across Ukraine.
EBRD Finance Summary
Up to EUR 10 million in UAH equivalent available in one committed tranche of up to EUR 5 million and one uncommitted tranche of EUR 5 million.
Total Project Cost
The loan will be highly additional because of its: (1) Financing structure: long tenor will support longer tem investments in local currency; (2) Standard-setting: Piraeus Bank will be following and enforcing clearly defined eligibility criteria for sub-borrowers, EBRD financial covenants and reporting requirements; (3) Knowledge, innovation and capacity building: adherence to the best environmental and social practice, including access to EBRD e-learning and Green Technology Selector will help to gain knowledge and skills in structuring GET-eligible investments.
Environmental and Social Summary
Categorised FI (ESP 2019). Piraeus Bank as an existing client will continue to comply with Performance Requirements 2, 4 and 9, the applicable E&S Risk Management Procedures for SME and Corporate Lending, and provide an annual environmental and social report. Any potential renewable energy projects as part of the GET targets will need to follow the E&S eligibility criteria for wind, solar, bioenergy, geothermal and hydro projects as applicablet, as well as the approach for solar supply chain risk management for solar sub-projects.
Technical Cooperation and Grant Financing
Non-TC: The project will benefit from the EU grant funds (via EU4Business initiative under the Action "Network of Business Support Centres in Ukraine'') that will be used to bring the all-in interest rate to acceptable market level.
Company Contact Information
+38 (044) 495-88-88
+38 (044) 593-75-25
11 Biloruska Str., Kyiv, Ukraine, 04119
PSD last updated
21 Nov 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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