FIF - Bank Lviv - 15m Senior loan - 2023

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A three-year senior unsecured local currency denominated loan of up to €15 million equivalent to be provided to Bank Lviv to enable the bank's support to private micro-, small and medium-sized enterprises ("MSMEs") in Ukraine. The facility is under the EBRD Financial Intermediaries Framework ("FIF").

Project ID 54453

Status Repaying

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Volodymyr Kuzyo
vkuzyo@banklviv.com
+38 050 438 54 19
https://www.banklviv.com/
1, Serbska str., Lviv, Ukraine, 79008

Project ID 54453

Status Repaying

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

18 Jul 2023

Disclosure date

20 Jun 2023

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."

FIF - Bank Lviv - 15m Senior loan - 2023 (Ukrainian) (PDF, 0.17MB)

Project description

Project objectives

The Project will help Bank Lviv to maintain sustainable funding base during the crisis and provide continued access to finance private MSMEs, including businesses affected by the ongoing war on Ukraine.

Transition impact

ETI Score:60

petitive: stems from fostering MSMEs' competitiveness by increasing availability of medium term local currency financing, and contributing to the competitiveness of Bank Lviv by enabling innovation in strategy, products, processes and marketing related to MSME lending;

Resilient: stems from reinforcing BL's lending capacity and by helping it to maintain sound funding profile despite potential threat of prolonged deposit outflows.

Client information

BANK LVIV JSC

A regional SME-focused bank in the western part of Ukraine with total assets of USD 216 million (ranked #25, 0.3% market share) and a loan portfolio of USD 133 million as of end-1Q2023. The bank has a head office in Lviv and 19 branches (13 in Lviv region and 6 in Kyiv, Lutsk, Uzhgorod, Ivano-Frankivsk, Rivne, and Ternopil).

Additionality

Response to the war in Ukraine: the Project is undertaken in the extraordinary circumstances of the ongoing war on Ukraine, enabling medium and long-term financing of Ukrainian MSMEs in the local currency.

Environmental & Social Summary

Categorised FI (ESP 2019): Bank Lviv is an existing client and will continue to comply with PRs 2, 4 &9, and further, implement and comply with the relevant EBRD's Environmental & Social (E&S) Procedures. An Environmental Social Monitoring Plan ("ESMP") has been developed under the previous transaction and its implementation status was reviewed during the due diligence.

Technical Cooperation and Grant Financing

TC: None

Non-TC: (i) First Loss Risk Cover: the Project will be supported by donor funded first loss risk cover in the amount of up to €7.5 million; and (ii) the Project will benefit from LCY Interest Rate Subsidy to reduce EBRD's funding cost in order to bring the interest rate of the UAH facility to acceptable market level.

Company Contact Information

Volodymyr Kuzyo
vkuzyo@banklviv.com
+38 050 438 54 19
https://www.banklviv.com/
1, Serbska str., Lviv, Ukraine, 79008

PSD last updated

20 Jun 2023

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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FIF - Bank Lviv - 15m Senior loan - 2023

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)