A 4-year amortising senior unsecured loan of up to €10 million equivalent to be provided to JSC Joint Stock Bank Lviv for on-lending to private micro, small and medium-sized enterprised (MSMEs). The loan will be available for disbursement as a synthetic UAH facility.
The transaction will help Bank Lviv to (i) diversify its funding structure with medium-term local currency resources and (ii) support its MSME portfolio growth. At least 50 per cent of all financed sub-loans under the project are to be directed on a best effort basis to support projects compliant with EBRD Green Economy Transition (GET) approach.
ETI score: 60
Competitive: the company will expand its MSME loan portfolio with a focus on sustainable green financing of Ukrainian MSMEs; and
Resilient: the company is expected to maintain adequate loan portfolio quality.
BANK LVIV JSC
A regional MSME-focused bank in the Western Ukraine with total assets of US$ 180 million (#31 in the system, 0.3% market share) and a growing loan portfolio (predominantly MSME) of US$ 120 million as of end-1Q21. The bank has a head office in Lviv and 21 branches (15 in Lviv region and 6 in Kyiv, Lutsk, Uzhgorod, Ivano-Frankivsk, Rivne and Ternopil).
EBRD Finance Summary
Includes €5 million committed tranche and up to €5 million uncommitted tranche.
Total Project Cost
Key sources of additionality under the project are:
- Financing structure: long term tenor supporting longer investments in local currency;
- Innovative financing structures: the structure promotes EBRD climate and environmental standards and climate risk considerations;
- Knowledge, innovation and capacity building: access to EBRD e-learning and Green Technology Selector will allow the company to gain basic knowledge and skills in structuring GET-eligible investments; and
- Standard-setting: The company is expected to endorse the Women Empowerment Principles (UN WEPs) to promote gender equality and women's empowerment in the workplace, marketplace and community.
Environmental and Social Summary
Categorised FI (ESP 2019). Bank Lviv is an existing client of the EBRD. The environmental and social (E&S) due diligence included review of the E&S questionnaire which was submitted by the client. An Environmental Social Monitoring Plan ("ESMP") which was agreed in relation to the previous transaction (DTM 50786) has largely been implemented and performance on environmental and social (E&S) issues to date has been satisfactory. The client now has an E&S policy and procedures in place to manage E&S risks in its lending as well as systems and policies to manage human resources and occupational health and safety in line with Performance Requirement (PR) 2 and PR4. Given the nature of the proposed project, Bank Lviv will be required to comply with PRs 2, 4 & 9, continue to implement and comply with the relevant EBRD Environmental & Social (E&S) Risk Management Procedures, and submit annual environmental and social reports to the Bank. 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 applicable.
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 for the company to acceptable market level.
Company Contact Information
+38 (068) 437 0579
1, Serbska str., Lviv, Ukraine, 79008
PSD last updated
29 Sep 2021
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