An unfunded guarantee of up to €75 million in local currency equivalent in favour of Raiffeisen Bank Ukraine (RBUA), a joint stock company incorporated in Ukraine. The guarantee will have an initial tenor of three years.
The guarantee will cover the risk of non-payment of local currency sovereign bonds held by RBUA. The guarantee will enable RBUA to make new sub-loans to private sector borrowers at a multiple of the guaranteed amount. At least €22.5 million in local currency equivalent will be allocated towards Green Economy Transition (GET) eligible sub-projects.
ETI score: 70
The project will free up capacity for new lending in Ukraine to MSMEs and corporates. Furthermore, the project builds on policy dialogue activities under the Vienna Initiative platform, reinforces cross border banking and is aligned with Technical Cooperation (TC) activities that support local authorities in strengthening and aligning their regulatory and supervisory frameworks for banks with those of the EU. The expected transition impact of the project is derived from the Resilient and Competitive TI qualities.
RAIFFEISEN BANK JSC
is an existing client of the EBRD and the fourth largest bank in Ukraine in terms of total assets and the third largest bank in terms of performing loans. It is the largest bank in Ukraine with foreign capital. The bank's key focus is lending to agricultural producers, multinational companies, and exporters. RBUA serves around 2.8 million clients, including more than 3,000 corporate businesses, and some 50,000 MSMEs through a countrywide network of around 400 branches.
RBU is 68.3 per cent owned by Raiffeisen Bank International AG Austria (RBI) and 30 per cent by EBRD.
EBRD Finance Summary
Total Project Cost
Additionality is achieved based on several factors:
- the EBRD offers a large volume instrument filling a market gap using an innovative financing structure on commercial terms not available from other market participants.
- the EBRD's involvement in the project is designed to trigger a change in Ukraine's regulatory and supervisory framework for banks.
- The project will support the commitment of a major EU banking group to the EBRD Region.
Environmental and Social Summary
Categorised FI (ESP 2019). RBUA will be required to comply with the EBRD's Performance Requirements 2, 4. It is expected that RBUA will apply the requirements of PR9 to its entire portfolio, including to the SME and corporate lending provided through the freed-up capital and as part of the Project. RBUA will need to implement the EBRD Environmental and Social Risk Management Procedures for Micro, SME and corporate lending and submit annual reports to the Bank. The project is consistent with the GET approach and the GET share is 30 per cent.
Technical Cooperation and Grant Financing
This project is closely aligned with the ongoing policy dialogue under the Vienna Initiative. A dedicated TC assignment in Ukraine will support the convergence of regulatory and supervisory frameworks for banks in Ukraine with EU standards.
Company Contact Information
Raiffeisen Bank JSC 9 Leskova street, Kyiv, 01011 Ukraine
PSD last updated
24 Dec 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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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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