RLF - Bank Lviv A/B loan 2022



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

15 Jul 2022



PSD disclosed:

18 Jul 2022

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

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.

Project Objectives

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.

Transition Impact

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.

Client Information


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

EUR 4,250,000.00

Total Project Cost

EUR 10,000,000.00

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

non-TC: none.

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

Volodymyr Kuzyo
+38 050 438 54 19
1, Serbska str., Lviv, Ukraine, 79008

PSD last updated

18 Jul 2022

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
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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 compliance@ebrd.com. 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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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