EUR 10 million senior unsecured A/B loan for on-lending to private SMEs in Ukraine, including to clients operating in food security sectors, requiring immediate funding support, and those which relocated their businesses to the western part of Ukraine due to the ongoing war. The facility is under the EBRD Resilience and Livelihood Framework.
The Project will help BL to maintain sustainable funding base during the crisis and provide continued access to finance for private SMEs affected by the war.
ETI score: 70
Resilient: stems from reinforcing BL's lending capacity and helping it to maintain sound funding profile despite the potential threat of material deposit outflows; and
Inclusive: stems from the much-needed financing support to private SMEs affected by the war to safeguard their human, organisational capital, and livelihood.
BANK LVIV JSC
A regional SME-focused bank in the western part of Ukraine with total assets of USD 220 million (ranked #28, 0.3% market share) and a loan portfolio of USD 160 million as of end-1Q2022. The bank has a head office in Lviv and 19 branches (13 in Lviv region and 6 in Kyiv, Lutsk, Uzhgorod, Ivano-Frankivsk, Rivne, and Ternopil).
EBRD Finance Summary
Total Project Cost
Comprised of EBRD funded A loan of up to EUR 4.25 million and up to EUR 5.75 million B loan funded by other participants.
Key sources of additionality under the project are:
- Financing structure: EBRD financing effectively bridges a financing gap due to adverse market conditions, helping BL to diversify its funding base and support SMEs to withstand negative shocks caused by the ongoing war on Ukraine;
- Resource mobilisation: the Project mobilises commercial funding through an A/B loan structure.
Environmental and Social Summary
Categorised FI (ESP 2019). BL is an existing client of EBRD and performance on environmental and social (E&S) issues to date has been satisfactory. Annual reporting, and previous E&S due diligence, demonstrates that despite the difficult time in Ukraine the Client has been actively working on development and implementation of the E&S management system, E&S risk management procedures built into the credit appraisal process and appropriate monitoring for E&S issues both within the portfolio and within the institution itself. BL will be supported by the donor funded TC assignment to enhance the bank's E&S review policies and procedures in line with EBRD requirements and gradually apply them in relation to all new loans / clients (not only those funded by EBRD). The Client should note requirements of the revised EBRD E&S Policy notably in relation to the updated E&S Exclusion List, the E&S Referral List and the requirement to apply PRs 1 through 8 and 10 to any Category A projects considered. The Client should continue its compliance with PRs 2, 4 and 9 and the submission of annual E&S reporting to the EBRD (to the extent possible).
Technical Cooperation and Grant Financing
TC: ESMS Design, Enhancement and Integration of Risk Management System will help BL to develop tools to assess compliance of all loans' / investments' with EBRD environmental and social requirements and best practices, and identify and manage high-risk transactions. The assignment cost is up to EUR 75,000, proposed for financing by Ukraine Multi-donor Account ("MDA") or the EBRD Shareholder Special Fund ("SSF").
Company Contact Information
+38 050 438 54 19
1, Serbska str., Lviv, Ukraine, 79008
PSD last updated
18 Jul 2022
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