FIF - Piraeus Bank Ukraine SME Loan II

Location:

Ukraine

Project number:

53142

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

16 Nov 2021

Status:

Approved

PSD disclosed:

21 Nov 2021

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

A 4-year amortising senior unsecured local currency denominated loan of up to EUR 10 million equivalent (in two equal tranches) to be provided to Piraeus Bank ICB JSC ("Piraeus Bank") for on-lending to private small and medium-sized enterprises ("SMEs"). 

Project Objectives

The transaction will help Piraeus Bank to (i) diversify its funding structure with medium-term local currency resources and (ii) support SME loan portfolio growth. 

At least 30 per cent of all financed sub-loans under the project are to be directed to support projects compliant with EBRD Green Economy Transition (GET) approach. 

Transition Impact

ETI score: 60

Competitive: Piraeus Bank will expand its SME loan portfolio with a focus on reaching regional Ukrainian SMEs and attracting new clients.

Resilient: Piraeus Bank is expected to ensure prudent lending practices and maintain adequate loan portfolio quality.

Client Information

PIRAEUS BANK ICB JSC

Piraeus Bank ICB JSC is a subsidiary of the largest financial group in Greece - Piraeus Financial Holdings S.A. operating in the country since 2007. In Ukraine, Piraeus Bank focuses on serving local SMEs operating in the agriculture, food processing, trade and manufacturing sectors. Total assets of the bank amounted to USD 180 million at the end of 3Q 2021. The bank has a network of 15 regional branches across Ukraine.

EBRD Finance Summary

EUR 10,000,000.00

Up to EUR 10 million in UAH equivalent available in one committed tranche of up to EUR 5 million and one uncommitted tranche of EUR 5 million.

Total Project Cost

EUR 10,000,000.00

Additionality

The loan will be highly additional because of its: (1) Financing structure: long tenor will support longer tem investments in local currency; (2) Standard-setting: Piraeus Bank will be following and enforcing clearly defined eligibility criteria for sub-borrowers, EBRD financial covenants and reporting requirements; (3) Knowledge, innovation and capacity building: adherence to the best environmental and social practice, including access to EBRD e-learning and Green Technology Selector will help to gain knowledge and skills in structuring GET-eligible investments.

Environmental and Social Summary

Categorised FI (ESP 2019). Piraeus Bank as an existing client will continue to comply with Performance Requirements 2, 4 and 9, the applicable E&S Risk Management Procedures for SME and Corporate Lending, and provide an annual environmental and social report. 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 applicablet, as well as the approach for solar supply chain risk management for solar sub-projects.

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 to acceptable market level. 

Company Contact Information

Igor Yakobchuk
info@piraeusbank.ua
+38 (044) 495-88-88
+38 (044) 593-75-25
www.piraeusbank.ua
11 Biloruska Str., Kyiv, Ukraine, 04119

PSD last updated

21 Nov 2021

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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