Food Security Guarantee ("FSG", the "Facility") in the form of an unfunded risk-sharing instrument covering 60% of the credit risk in newly originated sub-loans and payment guarantees with the total value of EUR 25 million equivalent to be originated by PCBU.
The Facility will support food security in Ukraine by enhancing PCBU's lending capacity and providing much needed access to finance for Ukrainian private companies operating in critical agri-related industries (farming, food and agri produce processing, transportation and imports), with the ultimate goal of preserving livelihoods in the country.
ETI score: 70
The Facility will support the Resilient and Inclusive TI qualities. The Resilient quality stems from credit enhancement mechanism provided by the FSG, which enables PCBU to finance Ukrainian agricultural value chains to preserve food security, while shielding their loan portfolio for excessive risk prevailing in the current volatile conditions. The Facility will also support the Inclusive quality by providing funding to the Ukrainian businesses directly affected by the conflict, aimed at safeguarding their human and organisational capital.
PROCREDIT BANK JSC
JSC "ProCredit Bank" in Ukraine ("PCBU") is a 100 per cent-owned subsidiary of ProCredit Holding AG & Co. KGaA and one of the market leaders in financing small and medium-sized businesses in Ukraine. With USD 1 billion in total assets PCBU ranked as the 14th largest bank in Ukraine. The bank offers all types of conventional banking products to its 5,200 SME clients and more than 23,000 private clients through 6 outlets, 4 self-service areas and a unified e-banking platform.
EBRD Finance Summary
Total Project Cost
Response to the war in Ukraine: the Facility is provided in the extraordinary circumstances of the ongoing war on Ukraine, serving as a significant risk mitigating instrument to enable financing of critical agri-related industries.
Environmental and Social Summary
Categorised FI (ESP 2019). PCBU 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 demonstrated that the bank has a written Environmental Management Policy, staff nominated to manage E&S issues, adequate E&S risk management procedures built into the credit appraisal process and appropriate monitoring for E&S issues both within the portfolio and the institution. The management system is applied to the entire commercial lending portfolio. PCBU has also provided information to confirm compliance with PRs 2 and 4. PCBU 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. PCBU 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: Non-TC funds for the First Loss Risk Cover ("FLRC") are provided to EBRD by Financial Intermediary and Private Enterprises Special Fund under a specific window for the EBRD's War on Ukraine Response Package.
Company Contact Information
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PSD last updated
29 Apr 2022
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