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RLF - RLG - Bank Lviv 2023



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

18 Jul 2023



PSD disclosed:

19 Jul 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."

Project Description

Resilience and Livelihoods Guarantee (RLG) in the form of an unfunded risk-sharing instrument of up to €7.5 million to Bank Lviv in Ukraine. The guarantee covers up to 50 per cent of the credit risk in newly originated sub-loans with the total value of €30 million equivalent (the "Covered Portfolio") subject to total 50 per cent of portfolio cap.

The Project will include a sub-limit under the SME Competitiveness Programme in the European Union's (EU) Eastern Partnership ("EaP SMEC" sub-limit, assigned with a separate EBRD project number 54661) of up to €4.5 million or 15% of the Covered Portfolio to finance long term capital investments of micro-, small-, and medium sized enterprises (MSME) to upgrade their technologies and equipment to EU standards, including investments in sustainable and green technologies (70% of EaP SMEC sub-limit), thereby enhancing businesses' competitiveness. Eligible sub-borrowers will also receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their investment projects.

Project Objectives

The facility will be used to support lending to Ukrainian private companies (predominantly MSMEs) operating in the primary and secondary agriculture and other critical industries (inter alia food processing, retail, logistics), with the ultimate goal of preserving livelihoods in Ukraine.

Transition Impact

ETI score: 70

The Facility will support the Resilient and Inclusive TI qualities.

The Resilient quality stems from credit enhancement mechanism provided by the RLG, which enables Bank Lviv to finance Ukrainian agricultural value chains and other critical industries to preserve food security, retain jobs, support family incomes, maintain consumption and access to food as a vital step in safeguarding people's livelihoods and to reduce losses due to supply chain disruptions, while shielding their loan portfolio from excessive risk prevailing in the current volatile conditions. The Facility will also support the Inclusive quality by providing funding to the Ukrainian businesses affected by the war, aimed at safeguarding their human and organisational capital, as well as Competitive quality (via EaP SMEC sub-limit) by improving MSME investments in line with EU standards, enhancing their competitiveness in domestic and export markets.

Client Information


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).

EBRD Finance Summary

EUR  7,500,000

Total Project Cost

EUR  30,000,000


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 industries.

Environmental and 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

Non-TC: The project is approved on the basis of minimum 50 per cent of donor funding coverage as the first loss risk cover in the amount of €3.750 million (50 per cent of the EBRD's risk share).

TC and non-TC under EaP SMEC sub-limit: MSME sub-borrowers will benefit from the EU funded financial incentives (up to 30 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

Volodymyr Kuzyo
+38 050 438 54 19
1, Serbska str., Lviv, Ukraine, 79008

Implementation summary

PSD last updated

19 Jul 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 EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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