John Deere Equipment Risk Sharing

Location:

Ukraine

Project number:

43523

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

FI

Approval date:

09 May 2012

Status:

Completed

PSD disclosed:

27 Jan 2012

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering providing unfunded risk participation in the portfolio of loans and leases extended by Raiffeisen Bank Aval and Raiffeisen Leasing Ukraine to farmers and agricultural companies in Ukraine for the purchase of John Deere agricultural equipment.

Transition Impact

This project will address a key transition impact in Ukraine, namely the lack of financing for farmers to buy new and/or replace old equipment in order to improve efficiency and yields. The main transition impact will therefore derive from demonstrating a new way of financing agricultural equipment leasing in Ukraine, with the hope that more financial institutions would take this up. The project would present an example of a successful collaboration between equipment manufacturers and a financial institution, encouraging other equipment producers and banks in the country to introduce similar schemes. Another impact would derive from the backward linkages to the farming sector, since new equipment should hopefully lead to improved efficiency and yields at the farm level.

The Client

Raiffeisen Bank Aval, a subsidiary of Raiffeisen Bank International (Austria) in Ukraine and Raiffeisen Leasing Ukraine, Raiffeisen Bank Aval’s leasing subsidiary are one of the leading providers of financing and leasing solutions to customers in Ukraine.

Deere & Company (“John Deere”) is one of the largest agricultural equipment producers in the world, with global sales of US$ 32 billion and EBITDA of US$ 5.9 billion in fiscal year 2011, present in 30 countries with approximately 56,000 employees worldwide. JD shares are traded on the New York Stock Exchange.

EBRD Finance

Unfunded risk participation of up to US$ 20 million or the UAH-equivalent for US$ or UAH loans and leases to be extended by Raiffeisen Bank Aval or its subsidiary Raiffeisen Leasing Ukraine

Project Cost

US$ 50 million or UAH-equivalent.

Environmental Impact

Categorised FI: Raiffeisen Bank Aval will be required to comply with PR2 and PR9, implement the E&S Leasing Procedures agreed with John Deere Group under OP ID: 42302 and submit Annual Environmental and Social reports to the Bank.

Technical Cooperation

None.

Company Contact

Victoria Masna, Director Financial Institutions, Raiffeisen Aval Bank, email: Victoria.masna@aval.ua, tel./fax: + 38 044 230 2344
Joern Loesch, Director Business Development, John Deere Financial, email: LoeschJoern@JohnDeere.com, tel.: +41 52 632 95 83

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

Share this page: