A four-year amortising senior unsecured loan of up to €25 million equivalent to be provided to JSC "ProCredit Bank" in Ukraine 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.
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.
ETI score: 75
Competitive: the company will expand its MSME loan 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 loan portfolio quality.
PROCREDIT BANK JSC
One of the market leaders in financing of small and medium-sized (SME) businesses in Ukraine, which account for more than 99% of the bank's loan book. With circa USD 960 million in total assets as of end of 2020, ProCredit Bank Ukraine was among top 15 banks in the country (1.5% market share), servicing clients through 8 outlets. The bank is a 100 per cent-owned by ProCredit Holding AG & Co. KGaA (PCH).
EBRD Finance Summary
Total Project Cost
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). PCBU will be required to comply with Performance Requirements 2, 4 & 9, implement and comply with the relevant EBRD Environmental & Social (E&S) Risk Management Procedures and submit annual environmental and social reports to the Bank. ProCredit Bank's borrowers will be required to comply with applicable national environmental, health and safety and labour requirements.
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
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PSD last updated
12 May 2021
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